Photo: aaron beam, co-founder and former cfo of healthsouth two former finance chiefs say loosening the sarbanes-oxley corporate governance law is a bad idea they should know--it's the. Healthsouth fraud case review michelle f white june 6, 2012 hpa 726 intro to healthsouth fraud case review in 2003, healthsouth was accused of one the largest accounting fraud cases in healthcare history and those involved are still being tried today, nine years later. Aaron beam has gone from healthsouth ceo to running his own one-man lawncare business in loxley (special to the birmingham news / kate mercer) aaron beam has admitted his crime and done his time. Introduction healthsouth corporation (healthsouth) began its rise in 1984 when richard scrushy, aaron beam, and other close associates formed the healthsouth empire with venture capital from new enterprise associates of baltimore.
Aaron beam served three months in a minimum-security prison for approving fraudulent quarterly numbers while cfo at healthsouth, the company he co-founded with ceo richard scrushy. Healthsouth: the wagon to disaster aaron beam, founder and former cfo, healthsouth, loxley , al aaron beam jr's story reads like the great american success story: start a company from zero. Aaron beam was the cfo when the fraud at healthsouth was initiated the trajectory of his career, by his own admission, was that he went from earning $500,000 per year to scrubbing urinals in prison. In the nine years since he was released from federal prison for his role in the $27-billion healthsouth accounting fraud, aaron beam, the company's former chief financial officer, started a one.
Ethics and organizations 2 in reference to the aaron beam and the healthsouth fraud case in our text velasquez (2012), the following questions from the text and my answers to these questions are provided as. Aaron beam - marsha stevens 2 introduction aaron beam was a certified public accountant that met a very charismatic businessman and chief operating officer named richard scrushy. An honest, humble, yet scathing indictment and historical narrative of one of the largest corporate fraud cases in history written by former cfo and co-founder of healthsouth, aaron beam. Aaron beam, co-founder and former cfo of healthsouth, will tell you the former millionaire-turned-yardman will tell his tale of getting involved in corporate fraud and going to federal prison beam is speaking 5:15-6:15 pm, wednesday, feb16 at the university center auditorium. The fraud took its toll on beam despite never speaking up about healthsouth's missteps, he retired from the company in 1997 it was nearly six years after his retirement that news of the $2 billion healthsouth scandal broke, but beam and each cfo after him were held accountable for their actions.
Aaron beam is the former founder and first cfo of healthsouth corporation in birmingham, alabama the company was founded in 1984 by he and richard marin scrushy and it became a fortune 500 company. Mr beam was a co-founder of healthsouth and the company's first cfo from 1984 to 1996 he helped grow healthsouth into a fortune 500 company however, in 1996 he took part in an accounting fraud at the company that resulted in one of the largest corporate frauds in the history of the united states. The new company was named healthsouth, and it focused on outpatient services, a new idea for its time beam explained that in the early '80s if you were in an accident and needed physical therapy, you stayed in the hospital for several extra days to receive that therapy. Scrushy co-founded healthsouth with aaron beam back in the mid 1980's beam was chief financial officer until 1997, and he served three months in prison on federal fraud charges.
View homework help - 03-report case study chapter 1 from rst 457 at university of illinois, urbana champaign case study 1: aaron beam and the health south fraud question 1 which of the obstacle to. The novel details the beginnings of both richard scrushy and aaron beam, the conception of healthsouth, and the slow, slippery cliff of fraud that would lead to the downfall of a billion-dollar enterprise and tragedy for most involved. Beam, the former cfo of healthsouth, pleaded guilty to bank fraud in 2003 he now gives paid, cautionary speeches to audiences at companies, schools and churches. In 2005, aaron beam, co-founder and former cfo of healthsouth, pled guilty to bank fraud and was sentenced to prison for his role at healthsouth, in the largest corporate fraud to come to light.
The morning after hearing the news report on healthsouth's fraud, beam and his wife met with a criminal attorney the lawyer told beam, do not lie to me do not lie to the federal government. Beam and smith both served prison time for the multibillion-dollar accounting fraud at the birmingham-based company, which is the nation's biggest provider of outpatient medical rehabilitation. You may question why the first image on my website is a portrait of ethel studies have shown that people have an easier time being ethical when they are given frequent reminders to do so.