Court says ex-HealthSouth exec should go to prison

AP News
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Posted: Nov 16, 2009 4:14 PM

A federal appeals court says a former HealthSouth executive should go to prison for his role in a huge accounting fraud at the Birmingham-based rehabilitation chain.

The 11th U.S. Circuit Court of Appeals ruled Monday that probation isn't enough punishment for Ken Livesay, who pleaded guilty to inflating earnings at HealthSouth.

Federal judges have sentenced Livesay to probation three times for his role in the HealthSouth fraud. Prosecutors appealed each time, claiming the sentences were too lenient.

The 11th Circuit agreed with the government's arguments a third time and went a step further, saying no amount of probation is enough for Livesay. The case now goes back to a district court judge.