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June 30, 2006
Feds finally get Scrushy
After failing to convict former HealthSouth chairman and CEO in a highly-publicized business fraud prosecution almost exactly a year ago, federal prosecutors obtained a conviction of Scrushy and former Alabama governor Don E. Siegleman on multiple bribery, conspiracy and mail fraud charges relating to Scrushy's alleged bribe to Siegleman of $500,000 to procure a seat on a state regulatory board that oversees hospital construction projects. Two other defendants -- a onetime Siegleman aide Paul Hamrick and former head of the Alabama transportation department, Gary Roberts -- were acquitted on all charges.
Interestingly, the Scrushy-Siegleman jury had reported to the judge on several occasions over the 11 days of deliberations that It was deadlocked, and it is not immediately clear from news reports what ended the deadlock. In this particular case, Scrushy's defense team attempted to sway the predominantly black jury by comparing Scrushy to civil-rights figures of the 1950's and 60's who suffered injustice in Alabama and the deep South. Scrushy's defense team even included Alabama lawyer Fred D. Gray, who represented Rosa Parks when she was arrested in 1955 for refusing to give up her seat on a Montgomery, Alabama bus. As you might expect, prosecutors denounced the Scrushy defense team's strategy as a racially-motivated attempt to influence the jury while contending that Scrushy was simply using his money and power to gain political influence to help HealthSouth.
The 53-year-old Scrushy was convicted on six counts and faces a potential sentence of over 20 years in prison. Sentencing is expected to take place this fall.
Posted by Tom at June 30, 2006 4:16 AM
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