Ex-HealthSouth exec faces new charges
BIRMINGHAM (AP) — A former HealthSouth Corp. finance chief already on probation for his role in a huge financial fraud was indicted on federal charges for allegedly making a string of bank deposits totaling more than $180,000 in cash to evade federal regulations.
Prosecutors said Malcolm “Tadd” McVay made 24 cash deposits, often minutes apart at two bank branches, in amounts just below $10,000, which is the threshold amount at which banks must file reports detailing transactions.
Defense lawyer Tommy Spina said McVay was depositing his own money for his daughter’s benefit.
“There was no illegal source of the funds that Tadd deposited,” Spina said.
The indictment, returned Wednesday, seeks the forfeiture from McVay of $182,000, which prosecutors said was the total of the deposits. The transactions occurred between August and October 2006.
McVay, 42, pleaded guilty in 2003 to signing a quarterly financial report in late 2002 that he knew contained phony assets, revenue and profits at HealthSouth. He was resentenced in February to five years on probation.
U.S. Attorney Alice H. Martin said structuring large cash transactions to prevent banks from reporting deposits is illegal. McVay could face up to five years in prison and a fine of up $250,000 if convicted on the new charge.
In the HealthSouth case, McVay forfeited $50,000, paid a $10,000 fine and served six months of home detention.
Information from: The Birmingham News
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