Scrushy settles SEC fraud suit

Fired HealthSouth Corp. Chief Executive Richard Scrushy agreed to pay $81 million to settle a Securities and Exchange Commission lawsuit blaming him for a $2.7-billion accounting fraud at the healthcare services firm.

The settlement was approved by a federal judge Monday. Scrushy admitted no wrongdoing but agreed to give up $77.5 million the government said he gained from the scheme. He agreed to pay an additional $3.5 million in civil penalties.

The deal ends a lawsuit the SEC filed four years ago, when the HealthSouth fraud was revealed. Since then, 15 former executives have pleaded guilty and another was convicted.

Scrushy was acquitted on all charges in the fraud and has since become a TV preacher in HealthSouth’s hometown of Birmingham, Ala.