Shielding Yourself Against Fraud

Shielding Yourself Against Fraud - 3/11/2009

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2009 News and Press Releases

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News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Shielding Yourself Against Fraud, The Lawyer Who Helped Get Healthsouth Ex-CEO Richard Scrushy Acquitted Of Fraud Charges Says All CFOs Should Safeguard Themselves Against A Likely Rise In Corporate Investigations.
Sarah Johnson

CFO.com. March 11, 2009
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EXCERPT: Inside corporations, the financial crisis has sparked a renewed interest in the talents of CFOs, who are expected to come up with ways to simultaneously cut costs and offer growth plans during lean times. But the credit crunch likely will also attract unwanted attention from outside forces, as companies in all industries, struggling during the downturn, could be subject to greater scrutiny by prosecutors and regulators, according to defense attorney James Parkman, whose most infamous client was Richard Scrushy, the former HealthSouth CEO acquitted of the health-care provider's $2.7 billion fraud earlier this decade. Parkman put a roomful of senior finance executives on notice during the CFO Rising conference in Orlando this week, warning them that their careers and reputations are at risk if they don't take personal and professional measures to protect themselves. "Corporate executives — especially CFOs — have the deadliest job in the world today," Parkman said. To be sure, CFOs at publicly traded companies don't risk their lives when they walk into their office every day. Still, they do put their professional futures on the line every time they certify their companies' financial statements as required under the Sarbanes-Oxley Act. Parkman warned that, to avoid legal liability, CFOs need to educate employees on their companies' compliance policies, be on the constant lookout for fraudulent behavior, and take precautions in case they ever become part of a criminal or civil investigation. Parkman contends that because of the public's heightened interest in the financial crisis - including questions about financial institutions' risky lending policies, executive compensation at government-assisted banks, and the recently uncovered high-profile Ponzi-style schemes — finance departments across industries will be dissected by U.S. investigators eager to appease political headwinds.

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