Company Frauds So Terrible You Won’t Believe They Actually Happened

HealthSouth Gets Fat For Seven Years

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In 2002 HealthSouth found themselves embroiled in a massive accounting scandal after overreporting profits for seven years. Suspicions about the company arose when CEO Richard Scrushy sold $75 million in stock a few days before the company posted a large loss. It was later revealed that Scrushy had been forcing the company’s accountants to falsify earning reports to meet investor expectations.

The seven-year-long scandal cost Scrushy his job, although he served no jail time. Luckily for him, there was not enough evidence for a conviction of fraud to be made. However, in 2009 he was sued for — wait for it — fraud by HealthSouth investors and was ordered to repay the company $2.8 billion.