Scrushy Makes Deal with SEC, But Can He Pay?

The former CEO of HealthSouth will pay $81 million to resolve a lawsuit filed by the Securities and Exchange Commission.

Richard M. Scrushy will forfeit $77.5 million and pay a $3.5 million fine, but neither admits nor denies allegations that he was part of accounting fraud, according to the New York Times. HealthSouth had settled the case earlier for $100 million.

A federal jury in 2005 acquitted Scrushy of charges that he participated in the fraud at the health-care chain.

SEC lawyer Jack Worland told the newspaper the settlement is probably one of the top five the SEC has reached with an executive.

The Wall Street Journal (sub. req.) reports that Scrushy has paid his lawyers more than $30 million in fees and may not be able to pay the entire settlement.

We welcome your comments, but please adhere to our comment policy and the ABA Code of Conduct.

Commenting is not available in this channel entry.