In news about one of our other limelight-seeking, self-aggrandizing, mental homunculi--Scrushy continues to live the high life

MICHAEL TOMBERLIN
News staff writer

The HealthSouth Corp. accounting scandal hasn't slowed down Richard Scrushy.

In the past few weeks, his private company bought a $3 million marina in Orange Beach. Scrushy also entered his speedboat - named Monopoly - in a Gulf Coast race and vacationed with his family in the Bahamas.

The expenditures come days after another of Scrushy's companies bought a jet.

Former U.S. Attorney Doug Jones, who represents investors with shares that sank with the disclosure of HealthSouth's accounting fraud, said his clients are not happy to see Scrushy living an opulent lifestyle.

"It's thumbing your nose at the shareholders and at the face of all who were harmed in this case," Jones said.

OH BOO HOO! They should have cashed out early, just like Dickie-baby, and they could be living the high life, too.

Donald Watkins, a Birmingham lawyer representing Scrushy, said Thursday his client has not done anything wrong and shouldn't have to change his lifestyle.

He said the Orange Beach marina, for instance, is a good investment. Days ago, Marin Inc., a private company operated by Scrushy, paid $3 million for the 3.5-acre Walkers Marina on nearby Terry Cove. The property had been on the market more than a year and is zoned for a condominium development.

"It's my understanding that the property is very valuable," Watkins said. "He is investing his money in things that appreciate in value. Under no definition is that a waste of assets."

Of course not. But everyone, please, just remember that past performance is no guarantee of future results. I mean, you know, it might lose a lot of money and have to be written off on taxes or something. Man, that would be terrible.

Watkins said the boat race will do Scrushy good. Scrushy has entered his 40-foot Skater racing boat Monopoly in Sunday's "Thunder on the Gulf Coast" Super Boat Grand Prix event, and Marin Inc. is a sponsor of the race weekend.

Oh, good. You know, I bet there are scads of former HealthSouth employees and broke stockholders who have just been beside themselves with worry wondering if po' Rich was doing okay and feeling good about himself. A nice boat race should cheer him us just fine--like a nice golf game does for O.J.

Among the boats scheduled to race in the event is one owned by Nick Carter of the Backstreet Boys singing group. Watkins said Scrushy will pilot Monopoly.

Oooh, Backstreet Boy meets Backroom Blowhard! I hope there's video.

"I thought that was a healthy exercise for him to undertake," Watkins said. "I just told him if he decided to enter the race, he must win."

At all costs?

(Sorry, how impertinent of me.)

Watkins said he is confident Scrushy will never have to surrender any of the wealth he accumulated while serving as chief executive of HealthSouth. Surveys in Fortune magazine have shown Scrushy was one of the nation's highest-paid CEOs.

Of course he's confident. That's what he gets paid to be.

Watkins said he recently joined Scrushy and his family on a trip to the Bahamas. Though Watkins was pursuing a business venture there, he said the Scrushys were there for pleasure. [...]

And who doesn't need a little pleasure in life, eh? Oh, by the way, the business deal was reported here, and involves expanding Watkins' banking business to the Bahamas. Not that there's anything wrong with that.

He also assures all of us that his client has no involvement in the venture.

Oh.

Okay then.

Scrushy's spending comes after the SEC failed to persuade U.S. District Judge Inge Johnson in Birmingham to freeze Scrushy's assets, estimated at $150 million.

A former SEC lawyer not involved in the case said Scrushy's actions validate the SEC's concerns.

"This is the government's worst nightmare in the sense it looks like he intends to dissipate the fortune he has accumulated over the years by pursuing an extravagant lifestyle," said Chris Bebel, now a partner with Houston's Shepherd Smith & Bebel law firm. "Even if his fortune is of an enormous nature, it won't stand up to this type of spending pressure much longer, especially when his legal fees are factored into the equation."

But isn't enough that he's happy?

At the hearing, SEC attorney Bill Hicks argued Scrushy shouldn't be allowed to "continue living the lifestyle of the rich and famous when every dollar he spends is one less dollar that will be around to compensate the victims at the end."

Oh come now, let's remember HE'S a victim, too. No, really.

In that hearing, Scrushy's attorneys argued he needed $223,237 per month to cover basic living expenses such as $3,180 for lawn maintenance at his mansions and $13,000 to pay the crew on his yacht. [...]

So terribly, TERRIBLY, misunderstood...

Bebel said Scrushy's public extravagance is likely not to win him new fans.

"It helps establish the degree of arrogance which seems to permeate every aspect of his being," he said. "News of this type of conduct will cause his foes to boil over with anger while at the same time engender confidence among his supporters."

Confidence inspired by the continued flow of cash--I would think that the percentage of supporters on his personal payroll is probably much higher than among the general public.

Anyway, live it up, Dick.
posted by Terry at 9:03:00 AM