Scrushy Ordered To Answer Questions About Assets

JAY REEVES

BIRMINGHAM, Ala. (AP) — Imprisoned HealthSouth Corp. founder Richard Scrushy must return to Alabama to answer questions from lawyers trying to collect an almost $2.9 billion judgment against the one-time executive, a judge ruled Thursday.

Circuit Judge Allwin Horn ordered Scrushy to submit to the sworn testimony after ruling him in contempt of court last week for failing to disclose his financial assets.

Scrushy, who is serving nearly seven years in prison in Texas for a federal bribery conviction, could face penalties including additional jail time if he refuses to talk during the deposition, said John W. Haley, an attorney for HealthSouth shareholders who sued Scrushy.

"There are serious implications to Mr. Scrushy if he fails to respond," said Haley.

The $2.9 billion judgment stems from the huge accounting fraud that occurred while Scrushy ran the Birmingham-based rehabilitation company. Former executives admitted inflating assets and earnings to meet Wall Street expectations, although Scrushy denied taking part.

A lawyer for Scrushy did not immediately return a message seeking comment Thursday.