Aaron Beam Biography

Aaron Beam Jr.'s journey reads like the Great American Success Story: build a company from the ground up, raise some venture money, go public in two years, become a billionaire overnight, and watch the firm become a Wall Street favorite. This success story, however, did not end there. Instead, Beam became embroiled in a corporate scandal, lost virtually everything, and ended himself in prison. That's not how most success tales finish, but for Beam, it was the brutal truth. Beam believes that others may benefit from his tale. From how I founded a big corporation to how I became engaged in the fraud while acting as Chief Financial Officer, and most significantly, the human tale, the agony of going through a trial and being imprisoned. In a nutshell, it's the story of how something very amazing went tragically wrong and the price one guy had to pay. Beam thinks that by sharing his experiences as a significant actor in one of the worst corporate frauds in recent history, he may assist future company executives avoid making the same mistakes that he and the four CFOs who succeeded him did. Beam co-founded HealthSouth, the nation's biggest provider of outpatient surgical and rehabilitation services, in 1984. Beam enjoyed the numerous benefits that business success can offer as revenues climbed to more than $3.5 billion - until 1996, when profitability fell just barely short of the company's target. According to Beam, HealthSouth's CEO, Richard Scrushy, ordered the books to be corrected at that point. Beam demonstrates that HealthSouth was a highly viable firm, unlike Enron, which just disintegrated. Our profits forecast fell barely short of what Wall Street expected - we were 90-95 percent there. When we couldn't genuinely make our numbers, Richard simply couldn't do it because his ego was so large. He's a very intimidating person. He persuaded us to falsify that 5-10% in order to meet our targets - he convinced us that we'd make it up in the next quarter. Unfortunately, the top accountant stated that he believed he could make the entries while concealing them from the auditors, and Richard replied, 'Let's do it.' I should have said no to him and stood up to him, but I didn't. Obviously, I lacked character. However, earnings fell short in the next quarter as well. Beam says, "We didn't make our numbers again, and he gave us the same lecture." I did that for four quarters - a year - till I couldn't take it anymore. In 1997, he resigned from the firm, anguished and filled with remorse. As the years passed and he heard nothing in the media, he came to assume that HealthSouth was actually profitable. In actuality, the scam persisted until 2003, when one of Beam's successors revealed it. When Scrushy's case went to trial in 2005, he and the other four CFOs testified against him. Meanwhile, Beam pled guilty to bank fraud. When you look back, you wonder, 'What was I thinking?' 'How come I didn't just do the right thing?' But, he says, it didn't seem that straightforward while he was in the midst of combat. I've had my lesson. If I were presented with a similar situation today, I know I would do the correct thing. Beam was subsequently sentenced to three months in federal prison for his role in the accounting fraud. He comments on the experience as he looks back on it. Being in jail is a fascinating experience. It was a low-security jail, and you could practically walk out if you wanted to. However, it is a jail. You can only call your family a set number of times per day, you can only have guests on Saturday and Sunday, and you must be in bed by 10:00 p.m. every night. You're in a barracks, on a bunk bed with 20 other guys. There is no such thing as privacy. Everyone in this prison is not a violent person. There are a lot of drug traffickers, but there are also a lot of individuals that are similar to me. There was a thoracic surgeon, attorneys, a congressman, a judge, businessmen, real estate moguls - all white collar criminals. It may happen to anyone, and one of the most common types is tax evasion. When Beam considers his time in jail, he realizes how fortunate he was. I was only there for three months, which is unusual. The majority of the folks that worked there had been there for several years. That would have been difficult to bear if I had been jailed for 5 years or such. It's not fun to be incarcerated. It was a difficult and emotional experience. The hardest part was causing shame to your family and friends. My family, on the other hand, adored me and stood by me. Of course, there was a cost to pay in addition to prison time. We lost almost everything, Beam explains. We had three or four mansions, BMWs and Porsches, and a lot of worldly possessions. However, they are insignificant. Now that it's all over, my wife and I are as happy as we've ever been. In fact, I'm happier today than I was when I had all of that stuff. An significant aspect of Beam's tale is emphasizing the good outcome of an incredibly bad situation. It made me understand what is actually essential in life: your family and your health. You're OK if you have it. Today, HealthSouth is still a successful business and the largest in its industry. In certain ways, I can still be proud of HealthSouth, says Beam. It's a fantastic firm. Beam is looking forward now that the HealthSouth saga is over. He feels it is his responsibility to tell his experience so that others are not misled. He is aware of the pressures that exist in the boardroom. He wants to educate today's corporate leaders – as well as future leaders – on the traps to avoid on the route to success. He claims that there are many sociopaths at the helm of large businesses. They have enormous egos, they intimidate others, they are certain that they are always correct, and they have little empathy for others. Be cautious if you work for a company with a boss like that. Recognize that you may be asked to do something you should not do one day. Don't let people influence you to the point of doing anything bad. You must have some moral integrity in how you conduct yourself in business. The urge to earn a living, to generate money, might drive you down a wrong road. Aaron Beam, Jr. had to learn the hard way. His is a cautionary tale with a universal message: speak up - or you'll be the one who goes to prison and pays the consequence.

As a renowned expert and highly sought-after speaker, Aaron Beam's expertise is in high demand. To book Aaron Beam for your next event, conference, or workshop, please contact our speaker booking agency. Our experienced team will work closely with you to understand your specific needs and help secure Aaron Beam's participation. With our professional guidance and seamless booking process, you can ensure a memorable and impactful experience for your audience. Don't miss the opportunity to engage your audience with Aaron Beam's compelling insights and inspire positive change within your organization. Fill out the booking request form to take the first step in securing Aaron Beam for your next speaking engagement.