History[ edit ] Before discovery and settlement, the area of present-day Selma had been inhabited for thousands of years by various warring tribes of Indians.
We have entered into an age of widespread investor skepticism over nearly all aspects of corporate governance. Scandals are sapping investor confidence. With the financial shenanigans at Enron, WorldCom, Global Crossing, Tyco, Adelphia, Lucent, Xerox, Qwest, Ahold NV, Peregrine and other public companies permeating the news, many are seeking ways to improve corporate governance and, in particular, Director accountability to Shareholders.
Solutions involving better disclosure and stiffer penalties miss the big picture.
Tweaking rules and regulations at the margins will only minimally improve the quality of corporate governance. The powers-that-be will vigorously seek to maintain the status quo.
Almost everyone who has previously enjoyed an advantage and is suddenly forced onto a level playing field will feel cheated, treated unfairly, singled out for undeserved punishment.
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 $, per year to scrubbing urinals in prison. Beam had learned that he should never question or criticize. Richmond investigated high-profile fraud schemes including Bernie Madoff, Stanford Financial and HealthSouth. He will discuss the role of forensic accountants in investigations and how fraudsters cook the books, as well as several fraud case studies. Lessons learned from a multibillion-dollar fraud Hosted by Neil Amato Aaron Beam, the former CFO at HealthSouth, discusses his tenure at the company and offers advice for professionals about fraud.
Shareholders the true owners of Corporate America should have the legal right to nominate truly independent Director-candidates and cause the names of those candidates to appear on the Company's ballot.
Shareholders put their faith in and entrust their money to directors to manage the company and counter a chief executive if need be. But when things get tough, boards become captive of executives or bankers or they simply leave. The recent case of Dynegy illustrates this.
Rather than stay to fix the mess the directors created, the entire Dynegy board resigned when shareholders rejected its efforts to sell the company. The reasons are interrelated. Too often directors don't have enough skin in the game to push the company in a strong direction.
They do not own substantial stock in their companies and face no risk if things go wrong. Even if directors are given incentives to take strong action, the corporate board is not set up for this type of decision-making. Directors work part time to manage the company.
It's tough getting any group to agree on anything, let alone to challenge chief executives. Boards thus naturally tend to rely on the top executives and advisers. Board collegiality and friendships among directors and with the chief executive often also mean that no director takes a disruptive stance.
All these factors work to prevent directors from taking charge of a company or forging their own vision, a sobering thought for those who advocate greater board power.
Too often, in my experience, boardrooms are full of directors that still don't understand that they have a fiduciary duty to shareholders at large. I think we have too much in boardrooms today a feeling that you have kind of a divine right to continue on the Board without anybody challenging that assumption.
They think they deserve their steep payouts even when their performance has been far from stellar.Lessons of the Health South Fraud HealthSouth was a small startup public company, founded by Richard Scrushy, the CEO.
Scrushy interviewed Weston Smith, a successful accountant, to work for his new company, and he took the job%(1). Nov 24, · Many lessons can be learned from the accounting scandal at HealthSouth.
Accounting scandals of this scale do not just occur on their own; they require multiple people to orchestrate. When the tone at the top of a company deviates away from any sort of ethical framework, it should be a red flag to other members of the company, to auditors, and to the public that fraud is more likely to occur.
Richmond investigated high-profile fraud schemes including Bernie Madoff, Stanford Financial and HealthSouth. He will discuss the role of forensic accountants in investigations and how fraudsters cook the books, as well as several fraud case studies. Selma is a city in and the county seat of Dallas County, in the Black Belt region of south central Alabama and extending to the west.
Located on the banks of the Alabama River, the city has a population of 20, as of the census.. The city is best known for the s Selma Voting Rights Movement and the Selma to Montgomery marches, beginning with "Bloody Sunday" in March and ending. HealthSouth Fraud Case Review Michelle F.
White June 6, HPA Intro to HealthSouth Fraud Case Review In , HealthSouth was accused of one the largest accounting fraud cases in healthcare history and those involved are still being tried today, nine years later.
Drawing on his recently published book, HealthSouth: The Wagon to Disaster, Beam recounted lessons learned. The book looks at the meteoric rise and colossal collapse of HealthSouth - from a two-room office, to a global corporation with more than 2, facilities, to the $ billion accounting fraud that landed Beam in prison.