Massive accounting fraud uncovered at HealthSouth. To live an ethical, honest life you have to work at it. As an individual you need to try to be perfect when it comes to behaving ethically. This is a journey that reads like the great American success story. Beam testified against Scrushy and then spent three months in a federal penitentiary. Here we are on Straight Talk Radio. Sometimes the truth is just off lost in the noise.
Aaron Beam gives a great inside look at the fraud that was HealthSouth. Even the way it's formatted could have used some help note to typesetters: it's not necessary to offset a new paragraph by both indenting and skipping a line. Unfortunately, this was just the beginning, and as forensic accountants. I speak about ethics and ethical choices, so does my guest. They can be subject to play if somebody really sets their mind to it. He was declared not guilty. Chiotakis: How did it get started? I was intimidated by Richard.
Scrushy seemed like a nice Christian man. But you made a really interesting comment as we start this program off with Straight Talk Radio, and that is expectation. So I kind of got started on the speaking deal. In addition to using such an unethical method to advertise and market their business, HealthSouth also used to list on their website some of the well know name of the celebrities and sports figures that used their services and facilities. But Scrushy insisted on coaching the team, and the results weren't good.
Between my legal bills and restitution, I was pretty much left with no retirement and no money. As soon as he could, he sold some stock and paid cash for a Mercedes. Aaron Beam possibly considers that to be his get out of jail free card, by pointing the finger back at his employer, as displacement of his responsibility. The people whom were cooperated in his actions are morally responsible for their actions. Today, I drive a Toyota Corolla. I have no employees, it's just me. Beam initially did this because of the pressure from Scrushy to make the company appear more profitable.
So I am honored to have you as a guest on the show. It inspired me to start going to church. Income was artificially inflated, numbers were manipulated, and false accounts were created. Never had we reported a bad quarter in 10 years of being a public company. You knew what that experience was like. He was convicted at that trial, following which he served six years in prison.
However, I do not believe Aaron Beam could or should have used the loyal agent's arguments to defend his actions. Margaret of Scotland Catholic Church in Robertsdale, and to parishioner Cordy Drollinger, who encouraged him to join the church. Beam later on went against his morals and continued to commit fraud until he finally retired. The left or the right? It followed on the heels of the Enron fraud. From his desire to own and operate a nightclub in Birmingham, to being a lead singer in his own country band Dallas County Line, to starting and managing a girl-band, to having half the public buildings in Birmingham and a parkway renamed after him, to paying a D-list Hollywood celebrity to be his lapdog, to Scrushy's ever-grating, belittling persona--there is a wealth of juicy dirt here to help paint him as a villain so farcical he could have come from a movie.
MarketWatch: How did you feel when you committed the crime? I actually needed to try re-retire. Beam knew he was stretching the truth because he continues to believe that the investor had to have some kind of knowledge of what he was doing. Beam: I came forward and admitted I had been involved. But you have to go down the road. By then, my life was totally upside down and not what it was before.
We told him the situation. Facing down the federal government has less to do with innocence or guilt than it does with having a pile of money and the will to fight back. We are not going to report a bad quarter! I had to auction off the home I lived in. HealthSouth Fraud Case Review Michelle F. Beam: I primarily want to communicate with accounting and finance majors.
So our timing was excellent. Beam: At times, someone would get up in the audience and call me an S. Of course, they were doggone close to bankrupt, a decade or so ago, maybe two, but everyone knows at some point everybody got an iPhone or people that want an iPad have got one. MarketWatch: How has your family been through this? There has been people who been hurt and they have lied and conspire and stole people medical files and lied in court just to cover up the truth instead of taking responsibility. I stayed there longer than I should have because of all these things that you say. Fraud might possibly bring you more riches than you can imagine, but in the end you will not be happy. Put this into a perspective to me, how old were you when you were connected with Richard and HealthSouth? Of course, I had gotten out of prison, so that was a positive.
I will be happy to share to blow the whistle on Health south. Phyllis is intuitively very smart. So, over time I just sort of distanced myself from Richard, but I stayed at the part. I mean, absolutely on the cutting edge of really changing to some extend how today in healthcare many of us receive the care that we have. One of the main competitors of Kindred Healthcare also a fortune 500 company known as HealthSouth Corp. What is the right moderate amount of padding an insurance claim or cooking the books? When did you realize you crossed the line? I came away convinced that it's just not worth it. Another big area of fraud was around mergers and acquisitions.