Ousted HealthSouth chief invokes the Fifth

Richard Scrushy's silence irks lawmakers, especially because he had appeared on a TV news show a few days before.

By Katherine Vogt, AMNews staff. Nov. 3, 2003.

Former HealthSouth chief executive and founder Richard M. Scrushy refused to answer questions from congressional investigators probing his role in a massive accounting scandal at the outpatient services giant.

Lawmakers called Scrushy to testify Oct. 16 before the House Energy and Commerce subcommittee on oversight and investigations, which is investigating the financial troubles of HealthSouth. But on the advice of his attorneys, Scrushy declined to answer questions, instead repeatedly invoking the Fifth Amendment, which protects against self-incrimination.

Donald Watkins, one of the attorneys representing Scrushy, did not return phone messages seeking further explanation.

But according to published reports, Watkins dismissed the hearing as an event aimed at generating publicity.

The anticipated move drew criticism from lawmakers. They questioned why the former CEO talked about the scandal in an interview that was broadcast on the CBS television show "60 Minutes" Oct. 12 but refused to answer the same questions from lawmakers.

"While I respect the rights afforded to him under the Constitution to refuse to incriminate himself, I question why he felt it appropriate to tell his story to a television journalist but is unwilling to tell his story to members of Congress under oath," said Rep. Billy Tauzin, (R, La.), chair of the energy and commerce committee, in a written statement.

Federal investigators have accused HealthSouth of overstating earnings by nearly $2.5 billion to meet Wall Street expectations. Since the allegations of fraud were announced in March, at least 15 executives have agreed to plead guilty to criminal charges, including all five former chief financial officers. HealthSouth founder Scrushy was fired as CEO, although he still has his board seat, and he has not been charged with a crime.