Scrushy convicted of bribery and fraud

A year and a day after being acquitted of masterminding a $2.7-billion (U.S.) fraud at HealthSouth Corp., Richard Scrushy was found guilty of bribery and mail fraud.

The Globe and Mail
June 30, 2006

Scrushy convicted of bribery and fraud
Accused of buying a seat on influential state hospital board
Bloomberg News

MONTGOMERY, ALA. — A year and a day after being acquitted of masterminding a $2.7-billion (U.S.) fraud at HealthSouth Corp., Richard Scrushy was found guilty of bribery and mail fraud.

Mr. Scrushy, 53, and former Alabama governor Don Siegelman, 60, were convicted yesterday by a jury. Prosecutors said Mr. Scrushy, HealthSouth's founder, paid Mr. Siegelman $500,000 (U.S.) for a seat on a hospital regulatory board. At the time, Mr. Scrushy was CEO of Birmingham, Ala.-based HealthSouth, the largest U.S. rehabilitation hospital.

The crimes are punishable by as much as 30 years in prison. Mr. Scrushy said he will appeal his six convictions for bribery, conspiracy and four counts of mail fraud.

"You know we will appeal," he said as he sat with his wife in the courtroom after the verdicts. "It's not over."

Assistant U.S. Attorney Louis Franklin said in closing arguments Mr. Siegelman created a corrupt political environment in which "you had to donate to participate."

"Deals struck in the bowels of hell are not often witnessed by choirs of angels," Assistant U.S. Attorney Stephen Feaga told jurors, urging them to ignore defence attacks on the character of prosecution witnesses.

The U.S. government said Mr. Scrushy paid $500,000 in state lottery campaign donations for an appointment to the board that decides on hospital expansion, allowing him to influence decisions on HealthSouth competitors.

Mr. Siegelman in 1999 appointed Mr. Scrushy to the body, called the state Certificate of Need Board, a nine-member group that grants and denies hospitals permission to add beds and equipment.

Prosecution witnesses testified the board voted on two HealthSouth projects during Mr. Scrushy's tenure, approving an application for a cancer screening device and one for a 38-bed rehabilitation centre. Mr. Scrushy noted that he didn't vote or participate in any board discussions on HealthSouth matters.


Brought to you by WikidFranchise.org

Risks: Fraud, Bribery, Mail fraud, Conspiracy to commit fraud, United States, 20060630 Scrushy convicted

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License