FORMER HEALTHSOUTH EXECUTIVE, SONNY CRUMPLER SENTENCED TO EIGHT YEARS IN PRISON

BIRMINGHAM, AL - On June 15, 2006, in U.S. District Court former HealthSouth Executive, HANNIBAL SONNY CRUMPLER, was sentenced to eight years in prison by U.S. District Judge Virginia Hopkins for his role in the massive accounting fraud while employed at HealthSouth.

“The Court found that Crumpler played a significant role in this fraud and deserves the eight year prison term received today,” stated U.S. Attorney Alice H. Martin.

CRUMPLER, 46 of Chelsea, was employed at HealthSouth from 1986 until 2000 in various capacities, including Controller for an operating division of HealthSouth from 1992 until July 2000. CRUMPLER was indicted in December 2004 and a superseding indictment was filed in August, 2005. He was found guilty after a lengthy jury trial in November 2005, of conspiring with other HealthSouth executives to fraudulently inflate the Company’s operating results and financial condition. The false and fraudulent entries made to HealthSouth’s books and records added approximately $2.64 billion in fictitious income to the books and records between 1996 and 2002. CRUMPLER was ordered to forfeit $1,398,250 in criminal proceeds he obtained as a result of the $2.64 billion accounting fraud at HealthSouth, and making false statements to auditors.

CRUMPLER was the Chief Financial Officer of Source Medical Solutions, a company started by HealthSouth and dependent on HealthSouth for financial support. The jury also convicted CRUMPLER of submitting false statements on behalf of HealthSouth to Ernst & Young, while the auditing firm conducted HealthSouth’s 2001 audit.

The Judge ordered that CRUMPLER surrender to custody on August 28, 2006. There were no additional fines imposed by Judge Hopkins.

The HealthSouth Investigation was conducted by the FBI-Birmingham Field Office, the U.S. Postal Inspection Service, and the Internal Revenue Service-Birmingham Division. The prosecution was conducted by Assistant United States Attorneys George Martin, Pat Meadows and James Ingram.