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Category > Accounting Posted 27 Aug 2017 My Price 6.00

Richard Scrushy

Exercise 1-17B Applications of the Sarbanes-Oxley Act

Greg Madrid, a HealthSouth billing clerk filed a suit under the False Claims Act charging that HealthSouth purchased computer equipment from a company owned by Richard Scrushy’s parents at prices two and three times the normal price. At the time, Richard Scrushy was the CEO of HealthSouth. The overcharges inflated HealthSouth’s expense ratios that the government used when calculating a Medicare reimbursement rate. As a result, the government was overcharged for services provided by HealthSouth. While refusing to recognize any wrongdoing, HealthSouth agreed to pay an $8 million settlement related to the lawsuit brought by the whistleblower.

Required

Explain how the provisions of Sarbanes-Oxley would provide protection to a whistleblower such as Greg Madrid.

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Maurice Tutor
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Status NEW Posted 27 Aug 2017 07:08 AM My Price 6.00

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