At least for now, HealthSouth Corp. founder Richard Scrushy won't have to turn over $25 million of his own money to repay in cash a company loan he previously repaid with inflated HealthSouth stock. A U.S. District Court judge in Birmingham, Ala., rejected the company's request that the government release $25 million of Scrushy's funds to cover the loan or force Scrushy to put up collateral to secure the loan. The judge ruled that the U.S. had not seized Scrushy's assets, although his assets have been frozen pending his trial on 85 counts of fraud, money laundering and conspiracy. The U.S. alleges that Scrushy led a conspiracy to inflate HealthSouth's earnings by $2.7 billion over several years and thus the company's stock value. He repaid the $25 million loan last year with HealthSouth stock then trading at $10.06 per share. The stock was trading at $5.78 per share when the loan was made. -- by Julie Piotrowski
For now, no action on $25 million Scrushy loan
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