Friday, June 19, 2009
Richard Scrushy: crime doesn't always pay...
The largest financial penalty ever to be levied against a single executive has been given to 56 year-old Richard Scrushy for his role in the HealthSouth financial statement fraud--$2.88 billion! Scrushy managed to avoid criminal prosecution for the fraud when jurors bought into his claims that subordinates orchestrated the massive fraud without his knowledge.
The WSJ reports that the judge in the civil suit, Judge Horn, rejected those arguments and "said Mr. Scrushy either knew or should have known about the fraud, giving no credence to Mr. Scrushy's repeated insistence that subordinates perpetrated the scheme without his knowledge."
Scrushy is essentially broke now and has five years remaining in jail on a bribery conviction.