Former Healthsouth executive faces feds

One recent recruit, Betsy Atkins, resigned March 25, after less than three weeks on the board.

Michael Martin, who is not related to Alice Martin, the prosecutor, is the third former chief financial officer of HealthSouth to admit to a scheme to inflate earnings that prosecutors say goes back for years.

He worked in HealthSouth's accounting department from 1989 until October 1997, when he was promoted to chief financial officer. He served in that position until early 2000, when he left the company.

Federal prosecutors say Martin worked with other financial executives at HealthSouth to inflate earnings so that they met or exceeded the expectations of Wall Street analysts. William T. Owens, another former chief financial officer who has admitted to the accounting fraud, served as controller while Martin was chief financial officer.

Martin is cooperating with regulators. His lawyer did not return a phone call seeking comment.