Exercise 1-17B Applications of the Sarbanes-Oxley Act Greg Madrid, a HealthSouth billing clerk, filed a suit under the False Claims Act charging that HealthSouth purchased computer equipment from a company owned by Richard Scrushy's par- ents at prices two and three times the normal price. At the time, Richard Scrushy was the CEO of HealthSouth. The overcharges inflated HealthSouth's expense ratios that the government used when calculating a Medicare reimbursement rate. As a result, the government was overcharged for services provided by HealthSouth. While refusing to recognize any wrongdoing, HealthSouth agreed to pay an $8 million settlement related to the lawsuit brought by the whistleblower