Former Sony Music head Tommy Mottola has denied reports in the Wall Street Journal that he was rewarded 250k in stock options by a Silicon Valley health care company called HealthSouth in return for signing a band the company was championing.
The report claims Mottola received the options from the company after its Chairman Richard Scrushy asked for help promoting an upcoming girl band called 3rd Faze. Scrushy had helped to create the band who were touring on a HealthSouth-sponsored roadshow. The band signed to Sony though they never released any material. The stock transfer happened shortly after.
A spokesperson for Mottola insists that the ex-Sony boss had no idea about the options award until recently. Backing up that claim is the fact the stock was never sold, even though shares in HealthSouth peaked last summer at $10.90 and have been sliding ever since.
HealthSouth is now under investigation by the Justice Dept for accounting and tax fraud, with Scrushy’s lavish lifestyle and affinity for the music industry now a matter of public record.