BIRMINGHAM, Ala. - The head of HealthSouth's corporate compliance program - which failed to prevent the massive fraud that has embroiled the rehabilitation giant in controversy - has quit.
The company announced the resignation Wednesday of Brandon O. Hale, an executive vice president and corporate secretary whose duties included oversight of the corporate integrity program.
HealthSouth said its longtime general counsel, William Horton, also had resigned.
While 15 former HealthSouth executives have agreed to plead guilty to fraud and conspiracy charges, neither Hale nor Horton has been publicly accused of wrongdoing.
Authorities contend HealthSouth and ousted CEO Richard Scrushy inflated earnings by at least $2.5-billion to make it appear the company was meeting the expectations of Wall Street analysts. Scrushy, who has not been charged with a crime, has blamed the fraud on underlings.
In Washington, the House Energy and Commerce Committee authorized its chairman Rep. Billy Tauzin, R-La., to issue subpoenas to compel people to testify at a hearing into the scandal if they refuse to do so voluntarily, panel spokesman Ken Johnson said.
