Business

Ex-HealthSouth execs plead innocent

NEWS IN BRIEF — Posted Aug. 2, 2004

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Two former HealthSouth executives have pleaded innocent to charges that they were involved in an alleged bribery and kickback scheme related to a contract between the outpatient services giant and a hospital in Saudi Arabia.

Robert E. Thomson and James C. Reilly appeared before U.S. Magistrate Judge Harwell G. Davis III, in Birmingham, Ala., July 15 to enter their pleas. Federal prosecutors announced earlier in the month that they had been indicted by a grand jury on conspiracy charges.

Thomson, a former division president, and Reilly, a former group vice president, were allegedly involved in a scheme to bribe an executive of a Saudi Arabian foundation to help HealthSouth secure a contract to provide staffing and management services for a hospital, prosecutors said.

Former HealthSouth executives Vincent Nico and Thomas Carman pleaded guilty in April to criminal charges for their roles in the alleged scheme. They have agreed to cooperate with prosecutors.

The defendants are among at least 19 former HealthSouth leaders who have faced criminal charges since a major accounting scandal at the company surfaced in March 2003.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/08/02/bibf0802.htm.

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