An avocational crime: Richard Scrushy is the founder of Health South Corporation, a global healthcare company located in Birmingham, Alabama. In 1986, Health South became a publicly traded company that continued to expand into new fields: worker’s compensation and sports medicine. The expansions allowed the company to double earnings and assets close to 100 million. By the early 1990s, the company had expanded to facilities in each of the 50 states and revenues exceeded 181 million.
It 1991, Medicare accused Health South of illegally adding costs for outpatient physical therapy. Medicare changed their funding arrangements, resulting in a 93 percent decrease in profits for Health South. Additionally, Blue Cross and Blue Shield of Alabama investigated Health South for improperly billed Medicare for therapy by students, interns, and unlicensed aids.
In 2004, the FBI investigated Scrushy and brought charges against him by the U.S. Securities and Exchange Commission (SEC).
Evaluate the Health South / Richard Scrushy case, and then prepare a written response to the following:
Develop a timeline of the investigation and trials of the Health South/Scrushy crimes.
Explain the types of white collar crimes committed by Scrushy/Health South employees.
Identify the theories and popular concepts that explain why these individuals engaged in criminal activities.
Determine how effective the Sarbanes Oxley Act (SOX) is in the reduction of white collar crime.
Support your paper with a minimum of three scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 5-7 pages, not including title and reference pages. An avocational crime.
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