BIRMINGHAM, Alabama - Richard Scrushy, the former CEO of HealthSouth, has fired back at his former company and federal regulators who have told a federal judge he shouldn't be allowed to start and lead a new healthcare company.

In a 90-page court filing this week, Scrushy's attorney laid out legal reasons why a ban on his serving as an officer in a new company should be lifted. He also responded to HealthSouth and the U.S. Securities and Exchange Commission's contention that Scrushy is not fit to take control of another company - including claims that Scrushy has never taken responsibility for a fraud at HealthSouth and that he's currently living a lavish lifestyle despite a $2.8 billion judgment against him.

Scrushy asks that U.S. District Court Judge Inge Johnson set a hearing on his fitness to run a new company.

Citing previous appeal court rulings, Scrushy contends the ban, contained in a 2007 settlement with the SEC on his serving as an officer in a new company, is "overly broad" and unenforceable. He argues that the ban and the entire injunction against him should be thrown out.

"Rather, it should be the 'street' - Wall Street, investors, and businessmen with whom he would necessarily have to interact to build another company - that should serve as the barometer of what Mr. Scrushy should be permitted to do and not do," according to Scrushy's filing. "HealthSouth's current and irrational vendetta against Mr. Scrushy should be brought to an end."

HealthSouth officials declined comment today on Scrushy's filing.

Scrushy in May had asked Johnson to lift the sanction and laid out plans for an unspecified new company that he would form to take advantage of opportunities opened up by the Affordable Care Act - commonly called ObamaCare.

The 2007 settlement containing the ban stemmed from the SEC's filing of a 2003 civil enforcement lawsuit against HealthSouth and Scrushy for an alleged $2.7 billion fraud for insider trading and accounting fraud.

Scrushy was acquitted in a federal criminal trial related to the alleged $2.7 billion fraud. At a civil trial in Jefferson County Circuit Court in 2009, however, Scrushy was found liable for the accounting fraud and ordered to pay HealthSouth nearly $2.9 billion in damages.

In an unrelated case, in 2006 Scrushy and former Gov. Don Siegelman were convicted of bribery and honest services fraud. Prosecutors alleged Scrushy bought a seat on a hospital regulatory board by arranging $500,000 in donations to Siegelman's 1999 campaign to establish a state lottery.

Scrushy, who was released from prison last year, recently lost the appeal of that conviction to the 11th Circuit Court of Appeals.

HealthSouth asserts Scrushy has not paid his debt to HealthSouth and its shareholders because he owes them $2.8 billion, not counting the rapidly mounting daily interest, according to Scrushy's filing.

"There is no person in this world, except perhaps Bill Gates, Carlos Slim, and Warren Buffett, who could begin to retire that debt," according to Scrushy's statement. "If HealthSouth is truly interested in seeking some payment, small though it may be, it would seem rational to let Mr. Scrushy get back to work and try to build another company. Yet, HealthSouth prefers to shoot itself in the foot and deny itself the very remedy it professes its needs and is entitled to."

Scrushy's current lifestyle

In this week's court filing, Scrushy responds to HealthSouth statements regarding his current lifestyle - including the filing of copies of American Express bills from the past year and a description of his house.

"What could possibly be the reason or relevance of describing the Scrushy residence or credit card bills to the issue of 'fitness' to serve as an officer or director of a public company?," according to Scrushy's response.

"Almost every officer and director of a public company in the United States lives in some sort of 'palatial estate' and has a credit card from American Express," Scrushy states in his response. "No doubt each of plaintiff's counsel also live in a palatial estate, has more than one home, and carries an American Express card.

The government and plaintiff's lawyers in the civil lawsuit wiped Scrushy clean of everything, including houses, cars, boats, paintings and a farm, according to Scrushy's response. The credit card does not demonstrate he is flush with capital, according to the court document.

"Even if Mr. Scrushy is somehow able to meet his monthly obligations, that hardly shows that he will not need income and retirement fund for later years in life," according to Scrushy's response.

HealthSouth had argued in a filing last month that it was an "insult to HealthSouth and its shareholders" when Scrushy claimed he has lost every dime he previously earned. "Scrushy didn't 'earn' his 'dimes.' He stole his money from HealthSouth and its shareholders through fraud and that money never was rightly his," the HealthSouth filing stated.

HealthSouth argued that Scrushy's earlier portrayal of himself as being in financial trouble is "a complete fabrication."

"Scrushy and his wife live in a 5,585-square foot, five-bedroom, six-bath mansion that she ... purchased for over $1 million in 2012," according to the HealthSouth filing. "After the house was purchased, thousands of dollars were spent building a swimming pool."

HealthSouth also filed copies of Scrushy and his wife's American Express Centurion Card bills.

Charges on that card over a few month period included over $26,000 at the Aesthetic Center for Plastic Surgery of Houston, a plastic surgery center in Texas. Other charges included $1,468 at the Guitar Center, more than $4,000 at Donoho's Jewelers, and thousands of dollars in charges at other businesses and restaurants, including a number of purchases at Whataburger.

Scrushy's children have set up companies, including SCR Enterprises, LLC, a Nevada corporation, and 7eventh Power, a Texas corporation, through which Scrushy can conduct consulting work, according to Scrushy's response. He states those corporations are legal.

"Of course, nowhere in HealthSouth's lengthy memorandum does it even recognize that HealthSouth was Mr. Scrushy's brainchild and his 'baby' - a company that he conceived, brought to life, grew, and made it what it was," according to Scrushy's response. "He worked tirelessly."

Scrushy built HealthSouth into the largest health care company in the world geographically that generated over $40 billion in revenue from 1984 to 2002, with more than 2,000 facilities and treating more than 100,000 patients a day, according to Scrushy's response.

Scrushy's response also took aim at the current management.

"Current management, including Jay Grinney who reportedly pays himself between $5 million and $10 million salary and bonuses every year as CEO, is riding on the successes of what Mr. Scrushy built," according to Scrushy's response.

In its opposition memorandum, HealthSouth contends that Scrushy has not taken responsibility nor has shown remorse for the fraud or bribing the governor.

"The short answer is that, if anyone, as has Mr. Scrushy, endured a five month criminal trial under the full weight and rigor of the United States government, for which the federal government brought in their 'heavy weights' or 'top guns' from Main Justice in Washington, DC, .... prosecute you, but you have been acquitted by a jury, why isn't that person entitled to profess his innocence?"

"Why should (the civil verdict) ... change that perspective?" according to Scrushy's response.

Scrushy questioned the fairness of the civil trial, part of the time which he could not attend and participate in because he was in jail away from the courtroom.

"Why is it not appropriate for Mr. Scrushy to deny his involvement in the fraud?" Scrushy's filing states.