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Sarbanes-Oxley News & Developments
SEC wants former HealthSouth chief exec assets frozen.Anticipating a federal judge to rule this week on former HealthSouth chief Richard Scrushys assets, the SEC is already pushing to keep assets out of Scrushys hands during an appeal.
> > Assets were frozen shortly after the SEC filed a lawsuit March 19, accusing Scrushy of being the ring leader in a scheme to inflate HealthSouths earnings by $2.5 billion. The SEC presented sufficient evidence to show that Scrushy orchestrated one of the largest financial frauds in American history, causing investors billions of dollars in losses. Johnson has allowed about $15 million of Scrushys taxes and some legal and business expenses to be paid.
The SEC said it needs the continued freeze to protect the public interest and block the possibility of a wire transfer because a large portion of Scrushys known assets are liquid and could be wired overseas in a matter of minutes.
Source: The Nando Times dated May 4,2003
Published:2003-05-05
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