Corporate Compliance

Scrushy asks court to drop civil charges

Compliance Monitor, July 27, 2005

Former HealthSouth Chief Executive Officer Richard Scrushy has asked a judge to throw out outstanding civil charges against him, reported The Boston Globe.

The Securities and Exchange Commission alleged in the civil suit that Scrushy masterminded a $2.64 billion fraud scheme in his role as HealthSouth CEO, and is asking for $785 million in civil fines and restitution. Scrushy was acquitted June 28th on criminal charges connected with the alleged fraud.

"After being pursued for years by all the king's horses and all the king's men, (Scrushy) stands before this court having been acquitted of all charges against him," his lawyers wrote, according to The Boston Globe. "Neither of the government agencies involved, the SEC (Security and Exchange Commission) or the DOJ (Department of Justice) have produced credible evidence that Mr. Scrushy knew others at HealthSouth were engaged in any accounting improprieties, much less fraud."

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