Attorneys draw trail of Scrushy's money - WBRC FOX6 News - Birmingham, AL

Attorneys draw trail of Scrushy's money

BIRMINGHAM, AL (WBRC) - Last week, Richard Scrushy calculated his current net worth at "negative," but all along, attorneys have said that they thought Scrushy has hidden his money with family members or companies that family members own. 

Monday, they tried to map out the money trail. 

First, they had Scrushy acknowledge he established a fund called Shepherd Trust and that money in that trust belongs to his wife and nine kids.  Shepherd Trust owns the majority of a company called Venture Holdings, LLC, which owns Astrata Land Company.  Astrata is run by Scrushy's son-in-law, Mike Plaia.

On the stand Monday, Scrushy admitted transferring tens of  millions of dollars in real estate and loans to Astrata.  Attorneys said that money is essentially owned by Scrushy's family members.

For hours Monday, Health South attorney Chris Glenos went over in detail what Scrushy transferred to Astrata land company and when he complete the transactions.  Several times Glenos asked Scrushy if he had collected any collateral on some of the loans, including one loan for as much as $10 million. Scrushy admitted he did not collect collateral on some of the loans. 

Attorneys say now that they know the trail, they will sue Shepherd Trust, Venture Holdings, LLC, and Astrata Land Company to try and put that money towards the $2.8 billion Scrushy owes HealthSouth stockholders.

Testimony resumes Tuesday morning.

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