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NEW YORK (CNNmoney.com) -
A former HealthSouth finance officer who cooperated extensively with the investigation into accounting fraud at the company is now facing a potential 8-year sentence on his charges, according to a news report.
William T. Owens pled guilty to participating in the $2.7 billion fraud, but expected to receive a reduced sentence based on his cooperation in prosecuting former HealthSouth CEO Richard Scrushy, according to the Wall Street Journal.
Owens testified for 11 days in the fraud trial of Scrushy -- who was acquitted in June 2005 (full story) -- as well as secretly recorded conversations with his boss.
The Justice Department has requested an 8-year sentence, but the decision will be made by U.S. District Judge Sharon Blackburn, said the report.
Mr. Owens's lawyer said in a court filing that potential sentence -- more than three times as long as that of anyone else involved in the fraud cases -- would deter potential whistle blowers from cooperating with law enforcement officials, according to the Journal.
Federal attorney Alice Martin said that Mr. Owens was not a whistle blower because he only began cooperating with the investigation after being served with a subpoena in a separate insider-trading investigation, said the report.
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Richard Scrushy just announced that he will resign as director of HealthSouth's board -- but suggests new candidates -- full story here.
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