Former HealthSouth CFO Sentenced to Three Years in Prison

Former HealthSouth Corp. CFO Mike Martin has been sentenced to three years in prison for his role in a $2.7 billion fraud at the health-care company, ending a sentencing saga that once put him on probation and house arrest.

U.S. District Judge L. Scott Coogler on Tuesday also sentenced Martin to serve two years of supervised release after his prison term is complete. Martin was ordered to begin his prison sentence Oct. 12.

It was the third sentencing for Martin, 46, who was CFO at HealthSouth from late 1997 to early 2000.

U.S. District Judge U.W. Clemon first sentenced Martin to probation and house arrest, but prosecutors won an appeal. Clemon then sentenced Martin to a week in prison. The 11th Circuit Court of Appeals overturned that sentence and removed Clemon from the case, setting up Tuesday's sentencing by Coogler.

Martin has served a seven-day sentence ordered by Clemon, and six months of home detention. He also has forfeited $2.375 million that prosecutors said he made from the fraud and has paid a $50,000 fine.

Martin pleaded guilty, and his cooperation with agents helped uncover parts of the huge accounting conspiracy at HealthSouth, the Birmingham, Ala.-based rehabilitation and medical services chain.

Martin testified last year against former CEO Richard Scrushy, who was acquitted on all charges. Martin also testified in May in Montgomery in the government corruption trial of Scrushy and former Gov. Don Siegelman, who were convicted on bribery charges.

"Today, the court imposed a just sentence that struck a balance between the fact that Mr. Martin provided substantial assistance to the government throughout our investigation of the fraud at HealthSouth and the serious nature of his offenses," said U.S. Attorney Alice Martin.

"Finally you can put a period on it," said Martin. "I'm just glad it's over."