Beautiful specimen RARE certificate from the HEALTHSOUTH Rehabilitation Corporation
Company printed in 1984. This historic document was printed by the American Bank Note Company and has an ornate border around it with a vignette of an allegorical figure. This item has the printed signatures of the Company’s Chairman, Richard M. Scrushy and Secretary.
HealthSouth was incorporated in Birmingham, Alabama as a Delaware company on February 22, 1984 as Amcare, Inc. by its founder Richard M. Scrushy. The company opened its first facility in Little Rock, Arkansas and one in Birmingham later that year. In 1985 the company changed its name to HealthSouth Rehabilitation Corporation
. In 1986 the company went public with its IPO on the NASDAQ Stock Exchange under the ticker symbol HSRC. At the end of the company's last investor roadshow presentation in New York City before its IPO, Scrushy received a standing ovation from the investment bankers in attendance, an extreme rarity. In September 1988 the company moved to the New York Stock Exchange and became listed under the symbol HRC. By 1990 the company had expanded to 50 facilities across the US. HealthSouth finished out 1992 with $400 million in annual revenue. In 1993 the company made its first large acquisition when it bought 28 hospitals and 45 outpatient rehabilitation facilities from National Medical Enterprise for around $300 million in cash. The acquisition doubled the company's annual revenue to $1 billion and also made HealthSouth the nation's largest provider of rehabilitative care. In 1994, HealthSouth further expanded when it announced it would buy fellow Birmingham-based ReLife for $180 million in stock.
The first of HealthSouth's accounting problems surfaced in late 2002 after CEO Richard M. Scrushy sold $75 million in stock several days before the company posted a large loss. HealthSouth was accused by the U.S. Securities and Exchange Commission (SEC) of an accounting scandal where the company's earnings were falsely inflated by $1.4 billion. In 1996, Scrushy allegedly instructed the company's senior officers and accountants to falsify company earnings reports in order to meet investor expectations and control the price of the company's stock. In certain fiscal years, the company's income was overstated by as much as 4700%. The $1.4 billion represents more than 10% of the company's total assets.
In March 2003, the SEC announced it was investigating whether Scrushy's stock sell was related to HealthSouth posting a large loss. HealthSouth hired an outside law firm to review Scrushy's stock sale, with the firm concluding that the sale and profit loss were not related, although this did not take the company off the SEC's radar. On the evening of March 18, 2003 FBI agents executed search warrants at the company's headquarters after the company's Chief Financial Officer William Owens agreed to wear a wire in a failed attempt to get Scrushy to talk about the fraud.Richard Marin Scrushy
(born August 1952 in Selma, Alabama) is an American business man and founder of HealthSouth Corporation, a global healthcare company based in Birmingham, Alabama.
In 2004, following an investigation by the Federal Bureau of Investigation (FBI), Scrushy had charges brought against him by the U.S. Securities and Exchange Commission (SEC). Scrushy was charged with 36 of the original 85 counts but was acquitted of all charges on June 28, 2005, after a jury trial in Birmingham.
Four months after his acquittal in Birmingham, Scrushy was indicted along with former Alabama Governor Don Siegelman on October 28, 2005, by a federal grand jury in Montgomery, Alabama. The indictment included 30 counts of money laundering, extortion, obstruction of justice, racketeering, and bribery. Although the new charges were filed a month before the previous trial ended, Scrushy's attorneys accused prosecutors of filing charges as retaliation for Scrushy's acquittal. Scrushy pleaded not guilty to all charges, but was convicted along with Siegelman in June 2006.
On May 7, 2009, Scrushy was transferred from the Texas jail where he had been incarcerated and placed in the custody of the Shelby County Jail in Columbiana, Alabama. Scrushy was returned to Alabama in order to testify in a new civil trial in the Jefferson County Circuit Court brought against him by shareholders of HealthSouth who sought damages related to Scrushy's trial and conviction. On June 18, 2009, Judge Allwin E. Horn ruled that Scrushy was responsible for HealthSouth’s fraud, and ordered him to pay $2.87 billion.On July 25, 2012, Richard Scrushy was released from federal custody.
About Specimen Certificates
Specimen Certificates are actual certificates that have never been issued. They were usually kept by the printers in their permanent archives as their only example of a particular certificate. Sometimes you will see a hand stamp on the certificate that says "Do not remove from file".
Specimens were also used to show prospective clients different types of certificate designs that were available. Specimen certificates are usually much scarcer than issued certificates. In fact, many times they are the only way to get a certificate for a particular company because the issued certificates were redeemed and destroyed. In a few instances, Specimen certificates were made for a company but were never used because a different design was chosen by the company.
These certificates are normally stamped "Specimen" or they have small holes spelling the word specimen. Most of the time they don't have a serial number, or they have a serial number of 00000. This is an exciting sector of the hobby that has grown in popularity over the past several years.