As previously discussed here, the civil trial against Richard Scrushy began in Alabama last week. Testifying today for the first time in his own defense, Scrushy said today he had “no knowledge of any financial fraud” at HealthSouth Corp., and that he was misled by other executives.
The Birmingham News reports that Scrushy testified that in 2003, he was told by former HealthSouth CFO Tadd McVay that the company had between $300 million and $400 million of cash reserves. McVay later pleaded guilty to accounting fraud and it turned out that the $350 million of cash reserves Scrushy said he relied upon after speaking to McVay had been faked.
The case is a bench trial (no jury) and will be decided by Jefferson Circuit Judge Allwin Horn.
