Risk Management

Former HealthSouth CFO Avoids Prison

He's one of five former HealthSouth finance chiefs to plead guilty.
Stephen TaubJune 3, 2004

Another onetime HealthSouth Corp. executive has avoided prison time by pleading guilty for his role in the company’s multibillion-dollar accounting scandal.

On Wednesday, former chief financial officer Malcolm McVay was sentenced to six months’ home detention and five years’ probation, according to Reuters. He was also fined $10,000 and ordered to forfeit $50,000.

McVay, the highest-ranking former company officer to be sentenced so far, is 1 of 15 former HealthSouth executives — including 5 former CFOs — who have pleaded guilty to criminal fraud charges in the case.

On Tuesday, Kenneth Livesay, who had been the company’s assistant controller and chief information officer, received five years’ probation for his part in the company’s accounting scandal. He will also spend six months under electronic monitoring, pay a $10,000 fine, and forfeit $750,000.