Risk Management

Crumpler Appeal Doesn’t Stand Up

Despite testifying against Richard Scrushy, former HealthSouth finance executive Hannibal ''Sonny'' Crumpler was sentenced to eight years in prison.
Stephen TaubApril 13, 2007

Former HealthSouth finance executive Hannibal “Sonny” Crumpler has lost his appeal of the only jury conviction stemming from the company’s $2.7 billion accounting fraud.

Once the controller of the company’s outpatient-rehabilitation division, Crumpler later became the finance chief of HealthSouth spin-off Source Medical Solutions. According to the Associated Press, he had asserted that the trial judge erroneously refused to permit some defense questioning and evidence, and misapplied laws dealing with financial forfeiture.

A three-judge panel of the Eleventh U.S. Circuit Court of Appeals rejected his claims, the wire service reported.

Although 15 former HealthSouth executives pleaded guilty for their roles in the company’s scandal, only Crumpler was found guilty by a jury, on one count each of conspiracy and making false statements to auditors. Founder and former chief executive officer Richard Scrushy, who also stood trial, was acquitted of all charges against him.

The AP elaborated that while finance chief at Source Medical Solutions, Crumpler sent HealthSouth’s auditors a letter that overstated the division’s debt to HealthSouth by $20 million, thus improving the appearance of the parent company’s finances.

Despite testifying against Scrushy, last June Crumpler was sentenced to eight years in prison and ordered to pay $1.4 million. He is already serving his sentence, according to the AP.