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HealthSouth Exec Cleared of Fraud Charges

By Alabama Public Radio

Birmingham, AL – Federal prosecutors have asked a court to throw out an indictment that accuses a former HealthSouth President of fraud in a huge accounting scandal at the medical services chain. Prosecutors had accused James Bennett of wrongdoing in a deal in which he sold company stock worth about $17.4 million. Bennett worked as chief operating officer at HealthSouth. He was charged with fraud, conspiracy, insider trading, money laundering and lying to the FBI. 15 former HealthSouth executives have pleaded guilty in the fraud. And testimony during the trial of former HealthSouth CEO Richard Scrushy indicated that Bennett was aware of the scheme. But his lawyer denies that claim. Scrushy has been cleared of charges that he directed a $2.7 billion earnings overstatement. The U.S. attorney's office filed the one-sentence motion late Monday. It asks for the dismissal of the case. Prosecutors gave no reason for the request.

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