Washington (April 23, 2003) - HealthSouth Corp. treasurer Malcolm McVay agreed to plead guilty to charges of conspiracy to commit wire and securities fraud and filing false financial information with the Securities and Exchange Commission, making him the 10th HealthSouth employee to cut a deal with the Justice Department in its investigation into the troubled health-care firm.
McVay, 41, is the fourth of the Birmingham, Ala.-based company's five former CFOs to be charged in the unfolding scandal. All four have agreed to cooperate with investigators.
McVay faces a maximum sentence on the wire and securities fraud charges of five years in prison and a $250,000 fine, or double the monetary gain or loss. The charge of knowingly causing false certification of financial information carries a maximum sentence of 10 years in prison and a $1 million fine.
Earlier this month, former CFO Michael Martin was charged with conspiracy to commit wire fraud and securities fraud, and falsifying financial information. A formal plea date hasn't been set.
Three weeks ago, five HealthSouth officers were charged and pleaded guilty in connection with accounting fraud, including chief information officer Kenneth Livesay, vice president of finance Emery Harris, chief financial officer William Owens. Former CFO Weston Smith previously pleaded guilty to accounting fraud charges.
The DOJ said additional charges in the case are expected.
-- WebCPA staff
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