Thursday, August 4, 2005

Cooperation Buys Probation for Former HealthSouth Exec

Often when the government is investigating a company or individual, they uncover criminal conduct that may be outside the focus of their initial investigation.  The question arises - what do you do with this evidence?  These extraneous criminal charges sometimes serve as the basis for the government securing cooperation agreements with individuals who will provide information related to the main investigation.

The Wall Street Journal (AP) reports here that a former HealthSouth executive received a sentence of probation and a $500 fine for a conviction on a false statement to the FBI "about [a] bribe, which was uncovered during an investigation into the huge fraud that nearly bankrupted the rehabilitation and medical-services chain."  The false statement was for "lying about a plan to pay a $1 million bribe in return for a $50 million deal to run a hospital linked to Saudi Arabia's royal family."


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