Scrushy reaches agreement on assets access

BIRMINGHAM, Ala., Jan. 22 (UPI) -- The ousted founder of HealthSouth Corp. has settled with the U.S. Justice Department over his attempt to access his assets while facing charges of fraud.

Richard M. Scrushy was indicted in late October on 85 counts, including securities fraud, for his alleged role in accounting fraud at HealthSouth, a Birmingham, Ala., health-care company. As part of the indictment, the Justice Department won a court order restraining Scrushy from accessing most of his assets in order to preserve them if he is convicted.

Scrushy has denied any role in the fraud. His trial is scheduled for August.

A hearing was scheduled for Thursday afternoon over the assets, but the Wall Street Journal reported the hearing was canceled. According to an order handed down by U.S. District Judge Karon Bowdre, "Because the parties were able to reach an agreement on these issues, the ... hearing is canceled. The court commends the attorneys for their hard work in resolving this matter."

The details of the agreement were not available.