Business

Charges dropped in HealthSouth case

NEWS IN BRIEF — Posted Aug. 8, 2005

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Prosecutors have dropped criminal charges against former HealthSouth president and chief operating officer James Bennett just weeks after his ex-boss was exonerated of criminal wrongdoing in the same accounting scandal.

U.S. Attorney Alice H. Martin gave no explanation for the move in a brief motion to dismiss the indictment against Bennett. A federal judge approved the motion on July 20.

Prosecutors had accused Bennett of securities fraud, insider trading, lying to investigators and more for allegedly being involved in a $2.7 billion accounting scandal in which HealthSouth executives conspired to artificially inflate the company's earnings and boost its stock price.

Eighteen former HealthSouth executives were charged with crimes in the plot, including ousted founder and chief Richard M. Scrushy. He was accused of masterminding the scheme but was cleared of all charges in June following a five-month jury trial.

At a Feb. 10 hearing, Bennett had pleaded innocent to the charges.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/08/08/bibf0808.htm.

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