Ousted CEO faces 85 counts, remains defiant

HealthSouth's founder is named in a scathing indictment.

By Katherine Vogt, AMNews staff. Nov. 24, 2003.

Faced with a long list of criminal charges that puts him in the same league as the nation's most infamous corporate bad boys, ousted HealthSouth chief Richard M. Scrushy stepped up and firmly declared his innocence.

On the same day federal prosecutors revealed an 85-count indictment alleging he masterminded a $2.7 billion fraud at the outpatient services giant, Scrushy used his Web site (www.richardmscrushy.com) to tell his side of the story.

"As I have said from the outset, I am an innocent man. I am deeply disappointed to have my innocence questioned and contested; however, I now embrace the opportunity to clear my name. The truth will emerge as I am able to confront my accusers and prove my innocence before a jury of my peers and the watchful eyes of our public," the Nov. 4 posting said.

The rebuttal adds to Scrushy's persona as a confident businessman who hasn't shied away from the public eye since he transformed his idea for an outpatient rehabilitation services company into a health care empire. But his persona and reputation are threatened by scathing charges that make him seem more like a corporate villain than a former respiratory therapist who worked hard to build his dream company.

The indictment paints a picture of Scrushy as a leader who controlled his employees through intimidation, directing them to falsify financial statements so HealthSouth's stock would perform well, affording him a lavish lifestyle that included a yacht, luxury cars and expensive jewelry.