The Richard Scrushy lake house was built for $17.8 million on six lots at 1470 Willows End in the gated Willow Point subdivision on Lake Martin. The luxury house sold at auction in 2009 for $7.4 million to HealthSouth shareholders, following a $2.9 billion fraud judgment against the former HealthSouth CEO.
The Story Behind Lake Martin’s Most Talked-About Property
When people give directions around Lake Martin, they often reference “the Scrushy house.” More than a decade after changing hands, this waterfront mansion remains a landmark on Alabama’s premier lake.
Richard Scrushy, the HealthSouth founder, constructed this mansion on six lots at 1470 Willows End in Willow Point, one of Lake Martin’s most exclusive gated communities. The property sits on the western part of the lake, south of Alexander City.
The home represents one chapter in a larger story about corporate fraud and legal battles that captured national attention. Scrushy was convicted of bribing former Alabama Governor Don Siegelman and found liable for the accounting scandal that engulfed HealthSouth in 2002.
Construction and Cost Details
The mansion cost $17.8 million to build. The property spans six separate lots in the Willow Point subdivision, creating an estate-sized parcel on the waterfront.
According to county appraisers, the main house measures approximately 14,000 square feet. Some sources suggest the total living space, including all structures, may reach 20,000 square feet.
Scrushy also owned a hangar at Willow Point Airport, one of only 2 or 3 hangars at the private airfield adjacent to the neighborhood. The hangar property sat at 644 Willow Way North.
What Made This Property Stand Out
The mansion includes several notable features:
Three boat docks along the waterfront provide multiple access points to Lake Martin. The main dock accommodates large watercraft, reflecting Scrushy’s reputation for cruising the lake in high-speed boats.
A swimming pool sits on the property, taking advantage of the lakefront setting while offering a private alternative to lake swimming.
The architectural style draws comparisons to Cape Cod and Nantucket designs. The home sits on a prominent point, visible from the water and recognizable to anyone boating in the area.
Inside, the house featured upscale furnishings and custom design elements. During the civil trial proceedings, attorneys catalogued items including designer furniture, artwork valued in the tens of thousands of dollars, and a third-floor spa room with massage equipment.
The Auction and Sale
In May 2009, Scrushy was found liable for the fraud that engulfed HealthSouth in 2002 and ordered to pay $2.8 billion in damages. His Lake Martin home sold at auction on November 9, 2009.
Tallapoosa County Sheriff Jimmy Abbott conducted the auction on the courthouse steps in Dadeville. The bidding lasted less than two minutes.
Wade Tucker, representing HealthSouth shareholders, presented the only bid. The shareholders purchased the house and two adjacent lots for $7.4 million, matching the property’s appraised value.
The hangar at Willow Point Airport sold for $435,000 in a separate transaction during the same proceedings.
The shareholders acquired the properties by crediting Scrushy the same amounts toward the nearly $3 billion he owed. This legal maneuver allowed them to take ownership without exchanging cash.
A judge had ordered the sheriff could not show the property before the sale. This restriction meant potential buyers couldn’t tour the home, which likely suppressed outside interest and bidding.
Life After the Auction
Following the auction, the HealthSouth shareholders’ attorneys began marketing the property for resale. Initial asking prices hovered around $5 million.
The home changed hands again, though subsequent sale prices and ownership details remain less publicized than the dramatic courthouse auction.
Today, the mansion continues as a private residence. Boat tours around Lake Martin still point it out as a landmark, and locals continue using it as a reference point when giving directions.
Scrushy’s Other Lake Martin Ventures
The mansion wasn’t Scrushy’s only connection to Lake Martin. He developed a neighborhood called Marina Marin, named after his middle name, off Highway 50 on the lake’s south side.
While not as upscale as Willow Point, Marina Marin attracted notable residents. Former Auburn football coach Tommy Tuberville owned a home in the development.
These ventures showed Scrushy’s vision for Lake Martin’s potential, even if his legal troubles eventually forced him to surrender the properties.
Understanding Willow Point
Willow Point was the first of Russell Lands’ waterfront developments on Lake Martin. The first lots sold in 1972, offering purchasers views of Lake Martin.
The gated community is known for beautiful level lots, a lake-side golf course and country club, and security. Willow Point features an 18-hole, par 72 championship golf course that follows Lake Martin’s shores, with eight holes bordered by the lake.
Residents enjoy gated security, level lots, beautiful forests and carefully controlled covenants and architectural standards. Many property owners initially built second homes but later made Willow Point their primary residence.
The community includes custom homes, lakeside townhomes, and the Glynmere section featuring Craftsman-style homes.
Lake Martin’s Real Estate Context
Lake Martin spans 44,000 acres with over 750 miles of wooded shoreline. The reservoir attracts buyers from Birmingham, Atlanta, Nashville, and Montgomery.
When Scrushy owned his mansion, luxury Lake Martin properties typically topped out around $1 million. His $17.8 million construction cost and eventual $7.4 million sale price far exceeded typical values at the time.
Today’s market sees continued interest in premium waterfront properties. Willow Point remains one of the lake’s most desirable addresses.
Properties in the area offer relative privacy compared to urban settings, while remaining within driving distance of major cities. The combination of natural beauty, controlled development, and recreational opportunities continues attracting affluent buyers.
The Property’s Cultural Impact
The Richard Scrushy lake house appeared in multiple media features. CNBC’s “American Greed” series highlighted the property when covering Scrushy’s fraud case. Netflix included the home in its “Trial by Media” documentary series.
These appearances cemented the mansion’s place in both Lake Martin lore and the broader narrative about corporate fraud in early 2000s America.
Local residents often describe the home as “gargantuan” compared to neighboring properties. Its scale and prominent waterfront position make it impossible to miss from the water.
For better or worse, the property represents a particular moment in Lake Martin’s history — when the lake attracted attention not just for natural beauty but for the dramatic legal battles surrounding one of its most prominent residents.
What This Means for Lake Martin Today
The Scrushy house story illustrates Lake Martin’s evolution from a regional recreation spot to a destination for significant wealth and development.
Willow Point’s continued prestige, despite this controversial chapter, speaks to the community’s quality and the lake’s enduring appeal.
The mansion’s ongoing life as a private residence, long after the headlines faded, shows how Lake Martin properties retain value and desirability independent of temporary ownership controversies.
For prospective buyers considering Lake Martin, the area offers everything from modest cottages to grand estates. The variety means different buyers can find their ideal lakefront property, regardless of budget or style preferences.
Lake Martin’s 750 miles of shoreline provide countless options. Willow Point represents just one premium community among many neighborhoods around the lake, each with distinct character and amenities.
Final Thoughts
The Richard Scrushy lake house remains one of Lake Martin’s most recognizable properties. Built for nearly $18 million and sold at auction for $7.4 million, the mansion tells a uniquely American story about ambition, excess, corporate fraud, and legal consequences.
Today, the home continues as a private residence in one of Alabama’s most beautiful settings. Lake Martin’s clear waters, wooded shorelines, and careful development make it easy to understand why this location attracted such significant investment — both from Scrushy and from the many residents who’ve made the lake their home.
Whether you’re curious about Lake Martin real estate, interested in corporate fraud cases, or simply fascinated by impressive properties, the Scrushy mansion represents an important piece of the lake’s history and character.
