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The Birmingham News
Ex-HealthSouth exec sentenced
Crumpler gets 8 years, longest in fraud case
Friday, June 16, 2006
MICHAEL TOMBERLIN
News staff writer
A federal judge Thursday gave a minor figure in the $2.6 billion HealthSouth Corp. fraud the most severe sentence handed down in the case, sending Hannibal "Sonny" Crumpler to prison for eight years.
U.S. District Court Judge Virginia Emerson Hopkins could have given Crumpler up to 15 years in prison after he became the only person convicted by a jury of participating in the HealthSouth fraud in a trial last November.
"I'm obviously hurt and disappointed but I'm going to appeal," Crumpler said following the sentencing Thursday in Birmingham. He is the former controller of HealthSouth's outpatient rehabilitation division.
Hopkins said she would recommend Crumpler serve his time at a minimum-security prison camp such as the one in Talladega and ordered him to surrender into custody Aug. 28.
Fifteen former executives pleaded guilty for their roles in the fraud and received sentences ranging from probation to five years in prison.
Former HealthSouth Chief Executive Richard Scrushy was acquitted by a jury last year.
Hopkins did not appear swayed when Crumpler's wife and son made tearful pleas for leniency in the courtroom.
"I beseech you today, take into account the great harm that would be done by incarcerating my father," Crumpler's 20-year-old son, Bryan, said, choking back tears. "His wife needs him and, most of all, my little sisters need him."
Crumpler embraced his son following the younger Crumpler's comments and Hopkins commended his courage for standing up and speaking in the packed courtroom.
Crumpler's wife, Nancy, also cried as she read prepared remarks and implored Hopkins to allow her husband to stay out of prison and at home with their daughters, 10 and 7.
"I come before you today on behalf of my family," she said. "Sonny is a wonderful man. He is a wonderful father."
But George Martin, the assistant U.S. attorney who prosecuted the case, said such pleas were not relevant to sentencing.
"The emotion in this courtroom today will subside and all that will be left is the jury's verdict and your sentence," he told Hopkins.
Remember the victims:
Martin didn't deny the sentence may hurt those close to Crumpler.
"That is of his own doing," he said.
Instead, Martin suggested Hopkins remember the victims of the HealthSouth fraud, both investors who lost money as the stock price plummeted when the wrongdoing was revealed and HealthSouth employees and suppliers who lost their jobs as a result.
Hopkins said when comparing HealthSouth with other high-profile fraud cases such as Enron and WorldCom, those who cooperated received lighter sentences than those who were found guilty through a trial.
Crumpler, who maintains his innocence, shook his head in disagreement Thursday each time prosecutors or Hopkins made statements concerning his involvement in the fraud. He recently filed the results of a polygraph with the court that he contends helps prove his innocence.
In his trial, the jury agreed with prosecutors that Crumpler worked as part of a conspiracy at HealthSouth and helped hide fraud on the books of thousands of facilities in the outpatient rehabilitation division where he worked.
After he left that position to join HealthSouth spinoff Source Medical Solutions Inc. as chief financial officer, prosecutors convinced jurors, Crumpler helped further the fraud at HealthSouth by lying to its auditors about how much money Source Medical owed HealthSouth, inflating the figure by $20 million.
Hopkins suggested in her sentencing it was Crumpler's decision to participate in the fraud a second time that deserved the most punishment. She sentenced him to five years for his role in the conspiracy and eight years for lying to auditors, with both sentences to be served concurrently.
U.S. Attorney Alice Martin, not related to George Martin, said she was disappointed with the sentence, believing the judge should have given Crumpler the full 15 years to help deter other white-collar crime.
Hopkins acknowledged she did not consider Crumpler a major player in the HealthSouth fraud, saying she would not label him a first-, second- or third-tier conspirator. She said she considers former finance chief Bill Owens a second-tier conspirator and former CFO Weston Smith third tier. She did not say whom she considers a top-tier conspirator.
Scrushy said Thursday he disagreed with Crumpler's sentence and conviction.
"I'm very saddened by it," Scrushy said. "Sonny Crumpler is a good man and I cannot bring myself to believe that he had anything to do with the fraud. It was a bad verdict and I am confident it will be reversed on appeal."
Crumpler's attorneys said they would appeal the verdict and the sentence and may seek to delay his reporting to serve his prison term pending the outcome of an appeal.
In January, Crumpler forfeited a Porsche, a BMW, a Volvo, his home and real estate to cover a $1.4 million judgment the jury determined represented his ill-gotten gains from the fraud.
Crumpler faced up to $1.3 million in fines Thursday. The judge did not impose any.
Ex-HealthSouth exec sentenced
Crumpler gets 8 years, longest in fraud case
Friday, June 16, 2006
MICHAEL TOMBERLIN
News staff writer
A federal judge Thursday gave a minor figure in the $2.6 billion HealthSouth Corp. fraud the most severe sentence handed down in the case, sending Hannibal "Sonny" Crumpler to prison for eight years.
U.S. District Court Judge Virginia Emerson Hopkins could have given Crumpler up to 15 years in prison after he became the only person convicted by a jury of participating in the HealthSouth fraud in a trial last November.
"I'm obviously hurt and disappointed but I'm going to appeal," Crumpler said following the sentencing Thursday in Birmingham. He is the former controller of HealthSouth's outpatient rehabilitation division.
Hopkins said she would recommend Crumpler serve his time at a minimum-security prison camp such as the one in Talladega and ordered him to surrender into custody Aug. 28.
Fifteen former executives pleaded guilty for their roles in the fraud and received sentences ranging from probation to five years in prison.
Former HealthSouth Chief Executive Richard Scrushy was acquitted by a jury last year.
Hopkins did not appear swayed when Crumpler's wife and son made tearful pleas for leniency in the courtroom.
"I beseech you today, take into account the great harm that would be done by incarcerating my father," Crumpler's 20-year-old son, Bryan, said, choking back tears. "His wife needs him and, most of all, my little sisters need him."
Crumpler embraced his son following the younger Crumpler's comments and Hopkins commended his courage for standing up and speaking in the packed courtroom.
Crumpler's wife, Nancy, also cried as she read prepared remarks and implored Hopkins to allow her husband to stay out of prison and at home with their daughters, 10 and 7.
"I come before you today on behalf of my family," she said. "Sonny is a wonderful man. He is a wonderful father."
But George Martin, the assistant U.S. attorney who prosecuted the case, said such pleas were not relevant to sentencing.
"The emotion in this courtroom today will subside and all that will be left is the jury's verdict and your sentence," he told Hopkins.
Remember the victims:
Martin didn't deny the sentence may hurt those close to Crumpler.
"That is of his own doing," he said.
Instead, Martin suggested Hopkins remember the victims of the HealthSouth fraud, both investors who lost money as the stock price plummeted when the wrongdoing was revealed and HealthSouth employees and suppliers who lost their jobs as a result.
Hopkins said when comparing HealthSouth with other high-profile fraud cases such as Enron and WorldCom, those who cooperated received lighter sentences than those who were found guilty through a trial.
Crumpler, who maintains his innocence, shook his head in disagreement Thursday each time prosecutors or Hopkins made statements concerning his involvement in the fraud. He recently filed the results of a polygraph with the court that he contends helps prove his innocence.
In his trial, the jury agreed with prosecutors that Crumpler worked as part of a conspiracy at HealthSouth and helped hide fraud on the books of thousands of facilities in the outpatient rehabilitation division where he worked.
After he left that position to join HealthSouth spinoff Source Medical Solutions Inc. as chief financial officer, prosecutors convinced jurors, Crumpler helped further the fraud at HealthSouth by lying to its auditors about how much money Source Medical owed HealthSouth, inflating the figure by $20 million.
Hopkins suggested in her sentencing it was Crumpler's decision to participate in the fraud a second time that deserved the most punishment. She sentenced him to five years for his role in the conspiracy and eight years for lying to auditors, with both sentences to be served concurrently.
U.S. Attorney Alice Martin, not related to George Martin, said she was disappointed with the sentence, believing the judge should have given Crumpler the full 15 years to help deter other white-collar crime.
Hopkins acknowledged she did not consider Crumpler a major player in the HealthSouth fraud, saying she would not label him a first-, second- or third-tier conspirator. She said she considers former finance chief Bill Owens a second-tier conspirator and former CFO Weston Smith third tier. She did not say whom she considers a top-tier conspirator.
Scrushy said Thursday he disagreed with Crumpler's sentence and conviction.
"I'm very saddened by it," Scrushy said. "Sonny Crumpler is a good man and I cannot bring myself to believe that he had anything to do with the fraud. It was a bad verdict and I am confident it will be reversed on appeal."
Crumpler's attorneys said they would appeal the verdict and the sentence and may seek to delay his reporting to serve his prison term pending the outcome of an appeal.
In January, Crumpler forfeited a Porsche, a BMW, a Volvo, his home and real estate to cover a $1.4 million judgment the jury determined represented his ill-gotten gains from the fraud.
Crumpler faced up to $1.3 million in fines Thursday. The judge did not impose any.
