[b]Sony Music Mogul Dragged into HealthSouth Scandal[/b] It came to light this week (August 7, 5:37 a.m.) that HealthSouth directors approved stock options for then-Sony Music chief Tommy Mottola in 2002. Then about five months later the record company signed a pop act managed by HealthSouth founder Richard Scrushy. Sony signed the music group, Third Faze in July of last year. The trio of women in their 20s has since broken up. A spokesman for Mottola says there was no connection between the stock options and the decision to sign Third Faze. He says Mottola never even knew about the stock options until contacted recently by The Wall Street Journal. Scrushy, who has dabbled in the entertainment business, has been fired as chief executive of HealthSouth amid a multi-billion dollar fraud scandal. Produced by Vanessa Staples :arrow Source: [url=http://www.wsfa.com/Global/story.asp?S=1392466&nav=0RdEHKuz]www.wsfa.com[/url] [b]UPDATE:[/b] Today (Nov 4, 2003), HealthSouth’s Scrushy was indicted on 85 counts of conspiracy, fraud, money laundering and falsely certifying financial statements. The 38-page indictment — “United States of America v. Richard M. Scrushy” — accuses Scrushy, whom the HealthSouth board of directors fired in March as president and chief executive and dismissed as chairman, of orchestrating the scheme to boost the company’s earnings and to enrich himself. Scrushy faces up to 650 years in prison and more than $36 million in fines if convicted on all counts. :arrow Source: [url=http://birmingham.bizjournals.com/birmingham/stories/2003/11/03/daily9.html]birmingham.bizjournals.com[/url] *Hum….I wonder if Roger Friedman will do a 10 part report on this.*

Leave a Reply

Your email address will not be published. Required fields are marked *