SEC Bans Former HealthSouth Exec From Practicing Accounting

The Securities and Exchange Commission has banned a former HealthSouth executive from working as an accountant at a public company.

The SEC's Monday action against Kenneth K. Livesay, assistant comptroller at HealthSouth from 1989 to 1999, comes as Livesay faces accusations of ordering employees to record false assets for the Birmingham-based company, the Washington Post reported.

Livesay accepted the ban without admitting or denying wrongdoing, the SEC said. He is also prohibited from serving as an officer or director at a public company, and he has agreed to cooperate with the SEC in related cases.

Fired Chief Executive Richard Scrushy, who has denied wrongdoing, was charged in an 85-count indictment with conspiracy, securities fraud and money laundering, among other things. He says the $2.7 billion accounting fraud was committed by others without his knowledge. Scrushy is free on $10 million bond. Jury selection in his fraud trial is set for Jan. 5.

Ten other HealthSouth executives have pleaded guilty to fraud charges and have been sentenced. Only one-Emery Harris-received jail time, for five months.

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