ASSIGNMENT COVER SHEET
THIS FORM MUST BE COMPLETELY FILLED IN
Please Follow These Procedures: If requested by your mentor, use an assignment cover sheet as the first page of the word processor file. The assignment header should include the Learner’s last name, first initial, course code, dash, and assignment number (DoeJXXX0000-1) justified to the left and the page number justified to the right.
Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work ...view middle of the document...
Fairness of the punishment
Early years of twenty-first century brought high wave of white-collar crime in financial world. Companies grew like a mushrooms; they slowly appeared, elevated up to certain degree, got involved in fraudulent activities, collected high revenues and varnished in the air making few people reliable for its loses. There are many great examples of promptly rich companies that raised its snowball empires over years and collapsed in a few days, like Enron, Lehman Brothers, WorldCom, HealthSouth and etc. These companies took advantage of deregulated markets and created complicated schemes involving upper management that helped them to achieve public look at their best and collect high revenues. When their empires collapsed, country went through depression that can be compared to the time of Great Depression. High unemployment, vast government injections and loosing USA positions on international markets are only a few examples. Who is responsible for all of these and did they get what they deserved? Many people disagreed with fairness of the punishments for white caller crimes that put our country through tough time of financial crisis.
HealthSouth was not an exemption from all these fraudulent actions; it was one more company down the line who had greedy upper management. HealthSouth Corporation, founded in 1984, was the largest U.S. provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, with approximately 1,800 locations in all 50 states, Puerto Rico, the United Kingdom, Australia and Canada (Mokhiber, 2003). List of crimes committed by HealthSouth goes far beyond simple misrepresentation of the truth. HealthSouth CEO Richard Scrushy created tight operation with 15 CFOs involved, who went “extra mile” in order for financial statements to meet expectations of CEO Richard Scrushy with constantly growing stock. In order to meet these expectations, CFOs committed following fraudulent actions: wires fraud, security fraud, falsification financials, failing false certification with Security Exchange Committee (SEC), bank fraud, overbilling insurance companies (overbilling Medicare scandal) and etc. Scrushy himself took advantage of HealthSouth and gained, “$278.7 million in property which Scrushy derived from proceeds of the alleged offenses, including several residences, boats, aircraft and luxury automobiles” (Mokhiber, 2003). He owned 34 automobiles including 2 Rolls-Royces and one Lamborghini (Jennings, 2012). Also, Scrushy operated HealthSouth as his own business. On his own, Schushy had over 10 businesses that had extensive business relationship with HealthSouth. G.G. Enterprises, company named after Scrushy parents, sold computers to HealthSouth, a contract that eventually resulted in investigation by the federal government for the overcharging of HealthSouth (Jennings, 2012). Scrushy took advantage of using company property as well; on a side from...