Former HealthSouth CEO Scrushy to Pay $10 Million, Attorney Says

Richard Scrushy, the former chief executive of HealthSouth, agreed to pay an extra $10 million to stockholders to settle Securities and Exchange Commission charges, his attorney Art Leach said on Monday.

Scrushy has already paid $71 million following two court orders -- one in Delaware, the other in Alabama -- to settle a fraud case of at least $1.8 billion involving overstated earnings dating from 1999.

Scrushy, who founded HealthSouth in 1984, was acquitted in 2005 in a trial related to a massive criminal accounting fraud at HealthSouth.

"The Alabama judgment pretty much cleaned him out. He has the ability to go back and show he does not have the ability to pay," said Leach. "He has agreed to the ($10 million) settlement."

In all, Scrushy was ordered to pay $77.5 million as reimbursement to stockholders and $3.5 million as a civil penalty, according to the SEC judgment released on Monday. It added that Scrushy had consented to the order.

Scrushy had already paid all but $10 million, Leach said.