Case library · Wall Street
The Chief and the Cooked Books
United States v. Scrushy (2005)
Charge: Conspiracy, securities fraud, false statements and false financial certificationsCourt: U.S. District Court, N.D. AlabamaState: AlabamaDocket: Wall Street
The facts
The accused founded a large health-care company and ran it as chairman and chief executive. Prosecutors say that over several years the company added about $2.7 billion in fake income to its books, and that he directed it. His pay was tied to the company's results. His five former finance chiefs admitted guilt and testified that he ran the scheme. He says his underlings ran the fraud and hid it from him. The law requires proof that he knew.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Scrushy, N.D. Ala.
Read more at justice.gov. The source reveals the outcome.