Former HealthSouth CEO Scrushy Pleads Not Guilty
Judge Sets Bond At $10 Million And Orders Scrushy To Wear Electronic Bracelet

BIRMINGHAM, Ala. -- Former HealthSouth CEO Richard Scrushy pleaded not guilty today to 85 counts. Federal prosecutors allege he was the mastermind of a corporate fraud scheme that allowed him to pocket more than a quarter-billion dollars from rigged books at the rehabilitation services company.

The indictment accuses Scrushy of a range of criminal violations, including false certification of corporate statements -- a charge the FBI says makes Scrushy the nation's first CEO accused under a new federal law.

The government also wants Scrushy to forfeit assets valued at $279 million, including several residences in the state of Alabama and property in Palm Beach, Florida; a 92-foot Tarrab yacht called Chez Soiree, a 38-foot Intrepid Walkaround watercraft and a 42-foot Lightning boat; a 1998 Cessna Caravan 675, together with amphibious floats and other equipment, and a 2001 Cessna Citation 525 aircraft; diamond jewelry; several luxury automobiles, including a 2003 Lamborghini Murcielago, a 2000 Rolls Royce Corniche, and two 2002 Cadillac Escalades; and paintings by Pablo Picasso, Marc Chagall, Pierre-August Renoir, among others.

The 51-year-old Scrushy surrendered to federal marshals today prior to his appearance before U.S. Magistrate Judge T. Michael Putnam. The judge set bond at $10 million and ordered Scrushy to wear an electronic ankle bracelet.

A federal court official in Birmingham, speaking on condition of anonymity, said the grand jury that indicted Scrushy heard evidence last week. Some of the witnesses included the 14 former HealthSouth executives who have pleaded guilty.

HealthSouth and Scrushy have also been charged with fraud in a civil lawsuit by the Securities and Exchange Commission.

I've met Richard Scrushy twice, once at an art show and once at a Healthsouth christmas party.
"Arrogance meet Mr Humble"