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HealthSouth accuses Scrushy of hiding assets

The Associated Press
Originally published: July 04. 2009 3:01AM
Last modified: July 03. 2009 11:21PM

BIRMINGHAM, Ala. — HealthSouth Corp. is accusing fired chief executive Richard Scrushy of hiding money in offshore bank accounts and transferring assets out of his name to avoid paying court judgments.

Documents filed Thursday by the Birmingham-based rehabilitation chain claim Scrushy has told people that he has some $600 million in accounts outside the United States. They also ask a judge to freeze real estate assets that Scrushy has put in the name of others.

An attorney for Scrushy didn’t immediately respond to a message seeking comment.

A judge ruling in a shareholder lawsuit filed on behalf of HealthSouth has ordered Scrushy to pay $2.8 billion for his role in a massive fraud at the company. Scrushy denies any wrongdoing, but the judge found him liable anyway.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.