Last year former HealthSouth CEO Richard Scrushy avoided a conviction related to HealthSouth's $2.64 billion fraud scandal. But as a result of the accounting irregularities, Scrushy walked off with $47.8 million in bonus payments. Now the Alabama Supreme Court has upheld an order requiring him to repay the company $51.5 million--the bonus payment plus interest totaling $15,500 a day. In their opinion, the Court stated, "Scrushy was unjustly enriched by the payment of the bonuses, which were the result of the vast accounting fraud perpetrated upon HealthSouth and its shareholders. It would be unconscionable to allow Scrushy to retain millions of dollars awarded to him in the form of bonuses at the expense of the corporation he served as chief executive officer." Seven months ago Scrushy was ordered to pay the money, but appealed because he said repayment would ruin him financially. His only viable option at this point is to appeal to the U.S. Supreme Court.
For the full story:
- read the Birmingham News article [1]
Related Article:
- Scrushy found guilty of fraud charges. Report [2]
Links:
[1] http://www.al.com/opinion/birminghamnews/index.ssf?/base/opinion/1156670492150910.xml&coll=2
[2] http://fiercehealthcare.com/story/scrushy-found-guilty-of-fraud-charges/2006-06-30