A year ago, former HealthSouth exec Richard Scrushy was acquitted of charges related to the spectacular $2.7 billion accounting fraud that brought the chain of rehabilitation hospitals down. In the process of his defense, Richard Scrushy accrued $32 million in legal charges. An arbitrator has determined that HealthSouth must pay $17 million in legal fees that Scrushy amassed in the course of his defense. It's a hefty reward, but only fixes some of his problems. As a result of accounting irregularities during his days with HealthSouth, Scrushy received $47.8 million in bonus payments. Recently, the Alabama Supreme Court ordered him to repay the company $51.5 million--the bonus payment plus interest totaling $15,500 a day. On top of the $15 million worth of legal fees he still owes, Scrushy's financial troubles aren't nearly finished.
For more on the ruling:
- read this Wall Street Journal article [1] (sub. req.)
Links:
[1] http://online.wsj.com/article/SB115807722243160701.html?mod=health_hs_health_providers_insurance