The former CIO of HealthSouth, Kenneth K. Livesay, was sentenced to six months of home detention for his role in falsifying financial information that the health-care company filed with the Securities and Exchange Commission.Livesay will also have to serve five years’ probation, pay a $10,000 fine and forfeit $750,000 from his gains at HealthSouth. He had pleaded guilty in April 2003 to three counts of conspiracy to commit wire fraud and securities fraud, and to falsifying quarterly and annual financial statements with the SEC. Livesay, 43, of Birmingham, Ala., joined HealthSouth in 1989 and was assistant controller until 1999 when he was promoted to CIO. His lawyer says he took the CIO job to avoid continuing his participation in the company’s fraudulent activities, according to The Wall Street Journal.Federal prosecutors had sought a five-year jail term for Livesay, and may still appeal the sentence he received. U.S. District Judge U.W. Clemon says Livesay merited home detention for his cooperation with government prosecutors. Livesay was sentenced the same week as former CFO Malcolm “Tadd” McVay, who also received a home detention and probation sentence for his role in the HealthSouth scandal.A forensic accounting review showed HealthSouth’s fraud totaled between $3.8 billion and $4.6 billion, the company said in a June 1 statement. Related content feature Key IT initiatives reshape the CIO agenda While cloud, cybersecurity, and analytics remain top of mind for IT leaders, a shift toward delivering business value is altering how CIOs approach key priorities, pushing transformative projects to the next phase. By Mary Pratt May 30, 2023 10 mins IT Strategy IT Leadership opinion Managing IT right starts with rightsizing IT for value While there are few universals when it comes to saying unambiguously what ‘managing IT right’ looks like, knowing how to navigate the limitless possibilities of IT is surely one. By Thornton May May 30, 2023 6 mins Digital Transformation IT Strategy IT Leadership brandpost Designing the campus of the future starts with high-quality 10Gbps connectivity By Huawei May 30, 2023 4 mins Network Architect Networking Devices Networking feature Red Hat embraces hybrid cloud for internal IT The maker of OpenShift has leveraged its own open container offering to migrate business-critical apps to AWS as part of a strategy to move beyond facilitating hybrid cloud for others and capitalize on the model for itself. By Paula Rooney May 29, 2023 5 mins CIO 100 Technology Industry Hybrid Cloud Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe