Risk & Compliance

HealthSouth Ex-Controller Gets Eight Years in Prison

Despite testifying against former CEO Richard Scrushy, Hannibal Crumpler receives the longest sentence of any executive implicated in the HealthSou...
Stephen TaubJune 16, 2006

Hannibal “Sonny” Crumpler, a former HealthSouth finance executive, was sentenced to eight years in prison for his role in the company’s $2.7 billion accounting scandal, the Associated Press has reported. This is the longest term given to anyone at the company.

Crumpler, former controller of the company’s outpatient rehabilitation division and later the finance chief of HealthSouth spin-off Source Medical Solutions, has the dubious distinction of being the only former HealthSouth executive to be convicted by jurors. Fifteen other former HealthSouth executives agreed to plea guilty, while former chief executive Richard Scrushy was acquitted on all charges at his trial a year ago.

Until Crumpler’s sentencing, the longest prison term handed out to a HealthSouth executive went to former finance chief Bill Owens, who received five years in prison even though he testified against Scrushy. Most of the other individuals who pleaded guilty avoided prison time altogether or received very short sentences.

Prosecutors sought 15 years for Crumpler, who was convicted last November of conspiracy and making false statements to auditors. The jury deliberated for just three hours, according to published reports.

The defense had asked U.S. District Judge Virginia Emerson Hopkins to impose probation or a combination of house arrest and parole, according to the wire service.