Scrushy faces new criminal charges of bribery, mail fraud

The ousted HealthSouth leader says the allegations won't stick.

By Katherine Vogt, amednews staff. Nov. 14, 2005.

A federal grand jury has returned an indictment against former HealthSouth leader Richard M. Scrushy. It's alleged he bribed a government official in Alabama to get a seat on the state certificate-of-need review board.

The indictment by a grand jury in Montgomery, Ala., accuses Scrushy of bribery and mail fraud for allegedly making two disguised payments totaling $500,000 to former Alabama governor Don Siegelman in exchange for his appointment to the CON board. Scrushy used his position on the board to "affect the interests of HealthSouth and its competitors," the indictment said.

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The charges were announced just four months after Scrushy was acquitted on federal charges of fraud and other crimes related to a $2.7 billion accounting scandal at HealthSouth, which resulted in his removal as chair and CEO of the Birmingham, Ala.-based outpatient services giant.

Prosecutors alleged that the former HealthSouth chief masterminded the scheme, but they failed to convince a jury of that after five months at trial. Scrushy is a defendant in several civil lawsuits stemming from the scandal.

The latest indictment includes 30 counts of charges against Scrushy, Siegelman and two other state officials. It was returned Oct. 26, though Scrushy was initially named in a sealed indictment in May.

Scrushy, as he did when the accounting-related charges were made against him, reacted defiantly to his indictment.

A statement on Scrushy's Web site said he "now understands the government's game."

"They threaten to indict you in order to get you to testify consistently with their notion of the facts against the target they want. If you do, your life can continue. If you tell the truth, and stand on your moral conviction, you get indicted. They will not cow me -- they will not cause me to testify falsely," Scrushy said.

In the same message, Scrushy attorney Art Leach said Scrushy never made any disguised payments or tried to buy his seat on the board.

Leach also accused the government of trying "to hurt and destroy Richard Scrushy, to harass him and his family, and to waste taxpayer funds through the abuse of authority."

ADDITIONAL INFORMATION:

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Statement from Richard Scrushy's defense team on federal charges alleging Scrushy bribed a government official, Oct. 26 (www.richardmscrushy.com/newsarticle.aspx?newsid=61)