When CEOs Order Plastic Surgery for Non-Employees (on the Company Dime)...

These days, it's stylish to pile on to CEOs gone bad.  Still, not all executive perks are created equal.  Let's reel off some executive perks and see how you react:

A. Parking spot

B. Company Car

C. Jet Time

D. Expense Account

E. Personal Trainer

F. Ability to order plastic surgery for non-employees of choice, at the company's expense...

I know, I know... You're probably thinking, "I don't really like any of these in these days of post-AGI excess, but KD's just throwing in item F to have fun...

If it were only that easy.  There's a company CEO of a publicly traded company who recently thought he was king, to the extent that he actually ordered his company to pay for plastic surgery for a non-employee whose career he was sponsoring.  The name is Richard Scrushy, former CEO of HealthSouth, a former Fortune 500 company before the FBI raided the corporate headquarters in 2002 due to evidence of accounting fraud.

Oh yeah - they're based in Birmingham, world headquarters of the Capitalist and Fistful of Talent.  Not exactly beaming with pride when I saw this list of stuff the "CEO as King" ordered up as part of his reign:

"Plaitiff’s lawyer John Haley argued in opening statements that Scrushy led a $2.64 billion accounting fraud at HealthSouth, a scheme that cost the company another $1.23 billion in fees and legal settlements once the fraud was discovered. Haley likened the case to an automobile accident, where someone has been hurt and the only witnesses are passengers in the car.

“He was the driver of the vehicle that caused the damage,” Haley said. The passengers in the car, Haley said, were the five former CFOs who have pleaded guilty to participating in the fraud.

Haley covered a lot of familiar ground. He described an accounting fraud that began relatively small in 1996 with a $7 million fudge on the books. By 2003, however, that fraud had ballooned to about $2.7 billion.

Haley blasted Scrushy for using the company for personal reasons. He told Circuit Judge Allwin Horn that Scrushy caused the company to do business with peripheral, related companies he’d set up. Often these ventures resulted in big payments to Scrushy and big losses for HealthSouth. The company wasted money on Scrushy’s music interests, Haley said, including more than $40,000 spent on breast augmentation for Scrushy’s girl band 3rd Faze.

In a flashback that seems surreal even in today’s business climate, the plaintiffs played for the court a clip from Scrushy’s music video, “Honk if You Love to Honky Tonk.” Scrushy paid the band out of HealthSouth funds and flew the band to events as far away as Australia on HealthSouth jets, Haley said."

Honk if you love honky tonk - and if you were the recipient of plastic surgery provided by King Scrushy without the express written consent of HealthSouth shareholders.

Comments

[kentropic]

In case you're wondering what our Captain of Industry is up to now, here's an inspiring update from his website, www.richardmscrushy.com:

"Currently, Richard is working diligently to clear his good name of the false accusations being made against him in connection with the alleged fraudulent activities of HealthSouth. He also focuses on the real-estate development business, Marin, Inc., and assists his wife Leslie with her company, uppseedaisees."

Maybe you'd like to send a message directly to poor, downtrodden Richard. If so, you can use the "Contact" page of the site:

"If you would like to send Richard a note of encouragement or support, ask a question, or make a comment, please use the following form to contact him. He would love to hear from you. If you have any information that you believe might be helpful in Richard’s defense, you can also use the form to provide us with that."

Imagine that: Richard M. Scrushy would "love to hear from you." Let's all tell him how we feel, shall we? Ain't technology grand?

[Tanya Barham]

OMG This is my favorite part of these meglomaniacal Poor Richards - the part where they act like the whole world is against them in some huge conspiracy and they are an innocent fall guy. I have seen these personalities outside of the board room too and the thing that always gets me is that as long as they live they somehow always manage to be right and everyone else is to blame for any misfortune or fallout. Must be nice to never be wrong?

[someone]

Complications my aunt fanny. I knew the girl who had complications...they made her take out her "giant" over the muscle implants for me tasteful under the muscle ones. Guess it never crossed her tiny mind to just have them removed. Umm maybe too much bleach. Where are the members of 3rd Faze now?!? Sara is off on some spiritual jouney trying everything to fill her void of fame cause she couldn't make it on her own...ha ha!!! Haile playing soccer or something in some small town. Minia tried to make it but couldn't. DOESNT THAT TELL YOU SOMETHING.

[SK Plastic Surgery]

Well he got it fraud out from healthsouth, spending the companies money for his own interest. healthsouth sell its private plane as an effort to save money, the company halted construction of its Digital Hospital. but where are all this girls gone to (Halie Clark, Minia Corominas, and Sara Marie Rauch. ) ?

[libby corominas]

Hello I just ran across this info and am shocked how SOME people THINK they know info but do not.... as for the girls of 3rd faze they of course moved on because they had to ... they got the rug pulled out from underneath them with NO warning and had to stop the group BUT not by their choice. Minia by the way did go on to sing and did quite well and she is presently working on new material now . As for the company paying $40,000 for breast jobs on the girls I know that is not true. I KNOW because I am Minia's Mother....

[recepti.hr]

That's so unfair! Women have to try harder to look good and we are the ones that care more. Men don't go crazy when they see a new grey hair or dimple in their behinds.

[Breast Augmentations Los Angeles]

This is outrageous. How can one spend the company's money on plastic surgeries, like breast implants or what? This proves its superficial nature from far away.

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