Former HealthSouth Exec Admits Lying
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A former HealthSouth Corp. vice president admitted lying to auditors about the value of an investment, becoming the 14th executive to plead guilty in an accounting fraud that prosecutors say will exceed $2.5 billion.
Will Hicks admitted telling auditors that HealthSouth had a $13-million stake in assisted-living facilities that he knew was worthless. All who pleaded guilty are helping prosecutors investigate former Chief Executive Richard Scrushy.
HealthSouth, which owes more than $3.3 billion to debt holders and wants to avoid a bankruptcy filing, has defaulted on bond payments and bank loans. HealthSouth said its lenders cleared the company to pay past-due interest to all its bond investors after today.
HealthSouth shares rose 12 cents to $3.09 in over-the-counter trading.
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