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On this date, Richard Scrushy founded the company Amcare. It was founded in Birmingham Alabama, and opened its first location in Little Rock, Arkansas.
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During the year 1985 Amcare changed names to HealthSouth Rehabilitation Center.
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In the year of 1986 HealthSouth Inc went public on the NASDAQ stock exchange under ticker HSRC.
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Former Internal Auditor Maron Webster was fired for questioning the accounting of receivables at an operation in Miami. Webster later testified against Scrushy.
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Caremark, a Scrushy owned company has a $161 million dollar criminal fraud settlement related to kickbacks. This same year, HealthSouth buys surgical Health, a company which Scrushy is a director of.
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Again in 1996, Caremark settles on a fraud case this time paying out $42.3 Million Dollars. This same year HealthSouth also invests in 21st Century Health Ventures which is a private company formed by Scrushy and his associates.
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The year of 1997 was a busy one for Scrushy and HealthSouth. One of his companies, MedPartners needed to be reorganized as it was imploding. HealthSouth purchsed Horizon/CMS for $1.6 Billions Dollars. At the end of the year, former CFO Aaron Beam steps down, with Michael Martin taking his place.
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Throughout the course of the year during 1999, HealthSouth buys back $1 Billion Dollars worth of stock. One of Scrushy's side companies, Integrated Health Services enters the state of bankruptcy.
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In 2000, HealthSouth is ordered to pay the State of Alaska $1 Million Dollars for a Medicare fraud.
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In 2001 HealthSouth pays out $8.2 Million Dollars in Medicare fraud for illegally billing for equipment purchased through a company that Scrushy's parents owned. Scrushy also resigns as director of Caremark.
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In the early part of 2002, Richard Scrushy's schemes begin to unravel. In May, the Justice Department joins in on the wistleblower action and Scrushy sells $1.3 Million Dollars of company stock from May to July.
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In February 2003, Scrushy was served with a subpoena and Weston L. Smith makes an Audio tape of his co-conspirators. The SEC charges both HealthSouth and Scrushy with Fraud.
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In March of 2003 the FBI raided HealthSouth and in the following month of April, SEC attempts to freeze Scrushy's assets and launched an insider trading action. Also at the end of April, former CFO Aaron Beam pleads guilty to fraud.
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In October of 2003 Scrushy does an interview with 60 Minutes about everything that is going on with HealthSouth, and then later takes the 5th amendment when on trial.
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In January of 2005, HealthSouth reaches a final $325 Million Dollar fraud settlement.
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In May 2005, despite all of the evidence, Scrushy was found Not Guilty. He must pay HealthSouth $17 Million for compensation received as CEO.
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In June 2006, Scrushy was found guilty on bribery charges with Alabama Governor Don Siegelman. He was sentenced to 6 years and 10 months in prison.
