Richard Scrushy

{{short description|American businessman and convicted felon}}

{{Infobox criminal

| image_name =

| image_caption =

| birth_name = Richard Marin Scrushy

| birth_date = {{Birth year and age|1952|8}}

| birth_place = Selma, Alabama, U.S.

| charge = Birmingham trial: 36 charges of fraud, false corporate reportings, and making false statements
Not Guilty
Montgomery trial: bribery and mail fraud
Guilty

| conviction_penalty = Birmingham trial: acquitted
Montgomery trial: 82 months in federal prison, three years' probation, United States Dollars $267,000 in restitution, a fine of $150,000 and 500 hours of community service

| conviction_status = Released

| occupation = Businessman
founder and former chairman and chief executive officer of HealthSouth Corporation,
former chairman and chief executive officer of MedPartners, Inc.

| spouse = Debbie Cody (197?–197?)
Karon Brooks (1978–1996)
Leslie Anne Jones (1997–present)

}}

Richard Marin ScrushyMatulich 2008: 337 (born August 1952{{cite web |url=http://www.biography.com/people/richard-scrushy-235385 |title=Richard Scrusy Biography |access-date=2009-05-19 |publisher=A&E Television Networks |archive-date=2012-06-14 |archive-url=https://web.archive.org/web/20120614024546/http://www.biography.com/people/richard-scrushy-235385 |url-status=dead }}) is an American businessman and convicted felon. He is the founder of HealthSouth Corporation, a global healthcare company based in Birmingham, Alabama.Matulich 2008: 338 In 2004, following an investigation by the Federal Bureau of Investigation (FBI), Scrushy was criminally charged by the U.S. Securities and Exchange Commission (SEC).{{cite news |url=https://www.nytimes.com/2003/03/21/business/the-rise-and-fall-of-richard-scrushy-entrepreneur.html |title=The Rise and Fall of Richard Scrushy, Entrepreneur |access-date=2009-05-19 |date=2003-03-21 |last=Romero |first=Simon |work=The New York Times}} Scrushy was charged with 36 of the original 85 counts but was acquitted of all charges on June 28, 2005, after a jury trial in Birmingham.{{cite web |url=https://www.usatoday.com/money/industries/health/2005-06-28-scrushy_x.htm |title=Scrushy acquitted of all 36 charges |access-date=2009-05-19 |date=2005-06-28 |last=Farrell |first=Greg |publisher=USA Today}}

Four months after his acquittal in Birmingham, on October 28, 2005, Scrushy was indicted by a federal grand jury in Montgomery, Alabama, along with former Alabama Governor Don Siegelman.{{cite news |url=https://www.nytimes.com/2005/10/29/business/29scrushy.html |title=Scrushy Pleads Not Guilty to Bribery and Mail Fraud |access-date=2009-05-19 |date=2005-10-29 |last=Whitmire |first=Kyle |work=The New York Times}}{{cite web |url=https://query.nytimes.com/gst/fullpage.html?res=9E06E1D81130F934A15753C1A9639C8B63 |title=Scrushy Is Indicted on Charges of Bribery |access-date=2009-05-19 |date=2005-10-27 |last=Freudenheim |first=Milt |work=The New York Times}} The indictment included 30 counts of money laundering, extortion, obstruction of justice, racketeering, and bribery. Although the new charges were filed a month before the previous trial ended, Scrushy's attorneys accused prosecutors of filing charges as retaliation for Scrushy's acquittal. Scrushy pleaded not guilty to all charges, but was convicted along with Siegelman in June 2006.{{cite news |url=https://www.nytimes.com/2006/06/30/us/30verdict.html |title=Ex-Governor and Executive Convicted of Bribery |access-date=2009-05-19 |date=2006-06-30 |last=Whitmire |first=Kyle |work=The New York Times}}

On May 7, 2009, Scrushy was transferred from the Texas jail where he had been incarcerated and placed in the custody of the Shelby County Jail in Columbiana, Alabama.{{cite news |title=Scrushy back in Shelby County Jail |date=2009-05-08 |last=Averette |first=Justin |publisher=Shelby County Reporter}} Scrushy was returned to Alabama in order to testify in a new civil trial in the Jefferson County Circuit Court brought against him by shareholders of HealthSouth who sought damages related to Scrushy's trial and conviction.{{cite web |url=https://www.wsj.com/articles/SB124275777313335655 |title=Scrushy to Face Shareholders |access-date=2009-05-21 |date=2009-05-20 |last=Bauerlein |first=Valerie |publisher=Wall Street Journal}} On June 18, 2009, Judge Allwin E. Horn ruled that Scrushy was responsible for HealthSouth's fraud, and ordered him to pay $2.87 billion.{{cite web |url=https://www.bloomberg.com/apps/news?pid=20601103&sid=a89tFKR4OevM |title=HealthSouth's Scrushy Liable in $2.88 Billion Fraud (Update 3) |access-date=2009-06-18 |date=2009-06-18 |last1=Davidson |first1=Laurence Viele |last2=David |first2=Beasley |publisher=Bloomberg}} On July 25, 2012, Scrushy was released from federal custody.{{cite web|url=http://www.montgomeryadvertiser.com/article/20120726/NEWS02/307260022/Scrushy-released-from-custody |title=Scrushy released from custody |access-date=2012-08-02 |date=2012-07-26 |last=Lyman |first=Brian |publisher=Montgomery Advertiser |url-status=dead |archive-url=https://web.archive.org/web/20120729111014/http://www.montgomeryadvertiser.com/article/20120726/NEWS02/307260022/Scrushy-released-from-custody |archive-date=July 29, 2012 }}{{cite web |url=http://www.wtvy.com/home/headlines/Richard-Scrushy-Released-from-Federal-Custody-163863696.html |title=Richard Scrushy released from federal custody |access-date=2012-08-02 |date=2012-07-26 |last=Hutchens |first=Aaron |publisher=Associated Press}}

Early life and background

Richard M. Scrushy was born in August 1952 in Selma, Alabama. The son of a middle-class family, his father, Gerald Scrushy, worked as a cash register repairman and his mother, Grace Scrushy, worked as a nurse and respiratory therapist.{{cite web |url=https://money.cnn.com/magazines/fortune/fortune_archive/2003/07/07/345534/index.htm |title=The Insatiable King Richard He started as a nobody. He became a hotshot CEO. He tried to be a country star. Then it all came crashing down. The bizarre rise and fall of HealthSouth's Richard Scrushy. |access-date=2009-05-19 |date=2003-07-07 |author1=Heylar, John |author2=Cherry, Brenda |author3=Neering, Patricia |publisher=Fortune Magazine}} At an early age, Scrushy taught himself to play the piano and guitar and was earning money doing odd jobs by the time he was twelve years old. Scrushy, who then went by his middle name Marin, attended school until he was 17. He dropped out prior to graduating from Parrish High School and married.

Scrushy soon found himself living in a Selma trailer park and working manual labor jobs to support his family.Jennings 2006: 214 After a run-in with a boss, Scrushy quit his job hauling cement and decided to return to school. He earned his GED and, at his mother's advice, began studying respiratory therapy at Wallace State Community College.{{cite web |url=http://www.richardmscrushy.com/biography.aspx |title=A Biographical Sketch: Richard Scrushy and HealthSouth |access-date=2009-05-19 |publisher=RichardMScrushy.com |archive-url=https://web.archive.org/web/20110715183043/http://www.richardmscrushy.com/biography.aspx |archive-date=2011-07-15}} After a year at Wallace State, Scrushy transferred to Jefferson State Community College and later entered the respiratory therapy program at the University of Alabama at Birmingham (UAB). Upon graduating from UAB's program, Scrushy was offered a position teaching at the university, where he was promoted to director during his two-and-a-half-year tenure. Scrushy divorced his wife, with whom he had two children, and took a position teaching at the Wallace State campus in Dothan. There, Scrushy met and married his second wife, Karen Brooks. The two had four children before they divorced in 1996.{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2006/05/17/AR2006051702076.html |title=Richard Scrushy's Chief Believer |access-date=2009-05-30 |date=2006-05-18 |last=Guyon |first=Janet |newspaper=Washington Post}}

In early June 1997, Scrushy married Leslie Anne Jones in Jamaica, with guests such as Martha Stewart attending. The group met at the HealthSouth Hangar at the Birmingham International Airport and boarded a chartered Boeing 727 to Jamaica.Bartlett 2005: 81 Together Richard and Leslie have had three children.

Career and HealthSouth

File:HealthSouth Corporation HQ.jpeg in Birmingham, Alabama]]

In the late 1970s, following his time teaching at UAB and Wallace State, Scrushy was offered a position with Lifemark Corporation, a Houston, Texas-based health care company. Within a few years of being hired at Lifemark, Scrushy was part of a $100 million operation that included the pharmacy, physical rehabilitation, and hospital acquisition divisions.{{cite web |url=https://www.forbes.com/forbes/2002/0121/056.html |title=Back To Life |access-date=2009-05-19 |date=2001-01-21 |last=Burke |first=Monte |work=Forbes}} While working for Lifemark, Scrushy moved to St. Louis, Missouri, where he worked as the regional director of the respiratory therapy division. He then moved to Houston where he became the company's chief operating officer.

Still working for Lifemark, Scrushy devised a plan for an outpatient diagnostics and rehabilitative health clinic chain. He presented the plan to Lifemark, but the company was unable to act on it due to a company merger that was already underway with American Medical International. Scrushy left Lifemark in 1983 and founded Amcare, Inc within a year.{{cite web |url=http://birmingham.bizjournals.com/birmingham/stories/2003/04/21/daily46.html |title=HealthSouth's first CFO charged; hospitals may be sold |access-date=2009-05-31 |date=2003-04-25 |last=Mackay |first=Steven |publisher=Birmingham Business Journal}} The new company opened its first facility in Little Rock, Arkansas, and had initial capital between $50,000-$70,000.Matulich 2008: 316 With the assistance of four partners from Amcare Inc. and a one million dollar investment by Citicorp Venture Capital, Scrushy took the quickly growing company and founded HealthSouth Corporation in 1984. Two years after its founding, HealthSouth became a publicly traded company. The next year, HealthSouth expanded into two new fields, worker's compensation and sports medicine, allowing the company to double its earnings and obtain assets close to $100 million. By the early 1990s, the company had expanded even more, with facilities in each of the 50 U.S. states and revenues in excess of $181 million.

Over the next decade, HealthSouth's sports medicine programs received international attention by being linked to star athletes including Bo Jackson, who served as the president of HealthSouth's Sports Medicine Council;{{cite web |url=https://www.espn.com/sportscentury/features/00016045.html |title=Bo knows stardom and disappointment |access-date=2009-05-19 |last=Flatter |first=Ron |work=ESPN.com}} Roger Clemens;{{cite news |url=https://www.nytimes.com/2005/01/27/business/27health.html |title=Vital Signs Return to HealthSouth |access-date=2009-05-19 |date=2005-01-27 |last=Freudenheim |first=Milt |work=The New York Times}} Jack Nicklaus, Kyle Petty;{{cite news |title=Satisfied Darrell Waltrip willing to gamble on Monte Carlo's stability |date=1995-01-29 |publisher=Atlanta Journal-Constitution}} Michael Jordan;Jennings 2006: 31 Shaquille O'Neal, and Lúcio Carlos Cajueiro Souza. Scrushy even allowed Jordan to stay free during the summer and fall of 1994 in a secondary house he owned in Greystone Golf and Country Club when Jordan played for the Birmingham Barons.

At its height, HealthSouth employed more than 50,000 physicians, was the "nation's largest provider of outpatient surgery and rehabilitative and diagnostic healthcare services", and had over 2,000 facilities in the United States, Puerto Rico, Australia, and the United Kingdom.{{cite web |url=http://findarticles.com/p/articles/mi_pwwi/is_20050229/ai_mark09001068/ |title=WebMD, Healtheon and HealthSouth to Co-Market and Connect |access-date=2009-05-19 |date=1999-09-14 |publisher=HLTH Corporation}} HealthSouth facilities worldwide saw more than 120,000 patients daily, and with earnings around $106 million in 1997, Scrushy was the third-highest-paid CEO in the U.S.Matulich 2008: 317

Legal battles

Although HealthSouth grew tremendously throughout the 1990s, becoming the largest comprehensive rehabilitative services company in the U.S., ethical and financial questions began to arise as early as 1989. An internal auditor alleged that he was fired for drawing attention to HealthSouth's financial problems and that he was pressured to meet certain earnings targets. Two years later, in 1991, HealthSouth was accused by Medicare of illegally adding costs to reports for outpatient physical therapy and inpatient rehabilitation admissions at the corporation's Bakersfield Rehabilitation Hospital. In 1998, Medicare changed its funding arrangements in an attempt to reduce exploitation and payments by $100 billion.Matulich 2008: 318 Scrushy insisted that the change would not affect HealthSouth's bottom line but profits dropped by 93 percent by the end of the year. Around this same time, HealthSouth began facing additional accusations of fraud. An investigation by the insurance company Blue Cross and Blue Shield of Alabama determined that HealthSouth had "improperly billed Medicare for therapy by students, interns and other unlicensed aides".

Additional lawsuits alleged HealthSouth had committed widespread abuse of Medicare by "billing for services it never provided, delivering poor care, treating patients without a formal plan of care, and using unlicensed therapists". In March 2003, the U.S. Securities and Exchange Commission (SEC) filed a civil suit against Scrushy and HealthSouth alleging the company had falsified at least $2.7 billion worth of profit between 1996 and 2002.Matulich 2008: 320 HealthSouth agreed to pay the United States government $325 million on December 30, 2004, in order to "settle allegations that the company defrauded Medicare and other federal healthcare programs".{{cite web |url=http://www.usdoj.gov/opa/pr/2004/December/04_civ_807.htm |title=HealthSouth to pay United States $325 million to resolve Medicare fraud allegations |access-date=2009-05-20 |date=2004-12-30 |publisher=United States Department of Justice}}

=Birmingham criminal trial=

File:United States of America v Richard M Scrushy.djvu

On February 6, 2003, the Federal Bureau of Investigation (FBI) announced that it had begun a criminal investigation relating to the "trading of shares of the HealthSouth Corporation" and possible securities law violations.{{cite news |url=https://www.nytimes.com/2003/02/07/business/fbi-is-investigating-healthsouth-trades.html |title=F.B.I. Is Investigating HealthSouth Trades |access-date=2009-05-19 |date=2003-02-07 |last=Freudenheim |first=Milt |work=The New York Times}} A criminal complaint was filed by the FBI against HealthSouth's chief financial officer, Weston Smith, and civil charges were brought against Scrushy by the SEC. Scrushy became the first CEO to be tried under the Sarbanes–Oxley Act when he was indicted by the U.S. Department of Justice in United States of America v. Richard M. Scrushy on November 4, 2003.{{cite news |url=https://www.nytimes.com/2003/11/05/business/former-healthsouth-chief-indicted-by-us.html |title=Former HealthSouth Chief Indicted by U.S. |access-date=2009-05-19 |date=2003-11-05 |last=Freudenheim |first=Milt |work=The New York Times}}Tarantino 2006: 111{{cite web |url=http://www.usdoj.gov/opa/pr/2003/November/03_crm_603.htm |title=HealthSouth Founder and Former CEO Richard Scrushy Charged in $2.7 billion Accounting and Fraud Conspiracy |access-date=2009-05-22 |date=2003-11-04 |publisher=US Department of Justice}}

Scrushy's initial charges included 85 counts of conspiracy, money laundering, securities fraud, and mail fraud, but he was ultimately indicted with just 36 counts.{{cite news |url=https://www.washingtonpost.com/wp-dyn/articles/A695-2003Nov4.html |title=HealthSouth Founder Is Charged With Fraud |access-date=2009-05-19 |date=2003-11-05 |last=Johnson |first=Carrie |newspaper=Washington Post}} In the indictment, Scrushy was accused of using intimidation, threats, and cash payments to coerce top HealthSouth executives into committing fraud.Markham 2005: 361 These top executives called themselves "The Family"Matulich 2008: 349 and referred to their creative accounting as "filling the gap". The group attempted to hide the false earnings by illegally inflating balances of accounts such as fixed assets and estimated insurance reimbursements. Despite multiple chief executives testifying against Scrushy, prosecutors were unable to produce any material evidence that he had been involved in the fraudulent accounting.

During the trial, Scrushy defended himself both inside and outside the courtroom. Scrushy was interviewed by Mike Wallace for a 60 Minutes segment called "Cooking The Books",{{cite web |url=https://www.cbsnews.com/news/cooking-the-books-20-05-2005/ |title=Cooking The Books |access-date=2009-05-21 |date=2005-05-22 |last=Leung |first=Rebecca |publisher=CBS}} began hosting a Christian television show with his wife called Viewpoint, backed a citywide 40-day prayer movement referred to as "City, thou art loosed", and joined the predominantly African-American Guiding Light Church.{{cite web |url=https://www.usatoday.com/money/industries/health/2004-10-25-scrushy-cover_x.htm |title=Former HealthSouth CEO Scrushy turns televangelist |access-date=2009-05-21 |date=2004-10-26 |last=Farrell |first=Greg |publisher=USA Today}} These actions were seen as an attempt to sway potential jurors, since 70 percent of Birmingham's population, and eleven of the eighteen jurors, were African American.{{cite web |url=https://query.nytimes.com/gst/fullpage.html?res=9C07EED6133AF934A25751C0A9639C8B63&sec=&spon= |title=Will the Real Richard Scrushy Please Step Forward; Race, Religion and the HealthSouth Founder's Trial |access-date=2009-05-21 |date=2005-02-17 |last=Romero |first=Simon |work=The New York Times}}Markham 2005: 362 Following more than a month of deliberations, Scrushy was acquitted of all charges on June 28, 2005.

=Montgomery criminal trial=

On October 26, 2005, four months after his acquittal in Birmingham, Scrushy was indicted by a federal grand jury in Montgomery. The indictment included 30 counts of racketeering, money laundering, extortion, obstruction of justice, and bribery of Alabama Governor Don Siegelman. Prosecutors claimed that Scrushy had agreed to pay over $500,000 of Siegelman's debt, which he accumulated during a failed attempt to bring a state lottery to Alabama, in exchange for a seat on the Certificates of Need Review Board. The board serves the state by reviewing hospitals and approving their construction. Although the new charges were filed a month before the previous trial ended, Scrushy's attorneys accused prosecutors of filing charges as retaliation for Scrushy's acquittal. Scrushy and Siegelman pleaded not guilty to all charges, but they were both convicted following a trial that lasted approximately six weeks. Scrushy was convicted of bribery, conspiracy, and mail fraud, while Siegelman was convicted of bribery, conspiracy, mail fraud, and obstruction of justice.

While awaiting sentencing, on March 29, 2007, Scrushy's probation officer filed a report claiming that Scrushy had violated the conditions of his bond by leaving Walt Disney World in Orlando, Florida and traveling to Palm Beach, where he boarded a yacht and sailed to Miami.{{cite web |url=http://www.wsfa.com/Global/story.asp?S=6297778 |title=Scrushy May End Up Under Home Confinement |access-date=2009-05-23 |date=2007-03-29 |publisher=WSFA12 News |archive-date=2007-07-28 |archive-url=https://web.archive.org/web/20070728111101/http://wsfa.com/Global/story.asp?S=6297778 |url-status=dead }} The probation officer suggested that Scrushy should be placed under house arrest and that he be required to wear an electronic monitoring device at all times. United States Magistrate Judge Charles Coody warned Scrushy that he "would not tolerate any future deviations from the requirements the court has placed on" him and ruled that Scrushy must wear a GPS tracking device anytime he travels outside of Alabama.{{cite web |url=https://www.usatoday.com/money/economy/2007-04-10-3394793955_x.htm |title=Scrushy remains free on bond |access-date=2009-05-23 |date=2007-04-10 |last=Johnson |first=Bob |publisher=USA Today}}{{cite web |url=https://query.nytimes.com/gst/fullpage.html?res=9B0CE2DE103FF936A25757C0A9619C8B63 |title=OPENERS: SUITS; Did Anyone Ask About a Yacht? |access-date=2009-05-23 |date=2007-04-15 |last=Whitmire |first=Kyle |work=The New York Times}}

On June 28, 2007, Scrushy was sentenced to six years and ten months in a federal prison, ordered to pay $267,000 in restitution to United Way of Alabama, three years' probation, and a fine of $150,000.{{cite web |url=http://blog.al.com/spotnews/2007/06/siegelman_gets_sevenplus_years.html |title=Siegelman, Scrushy taken into custody |access-date=2009-05-22 |date=2007-06-28 |author=Sims |publisher=Birmingham News}} Scrushy is also expected to personally pay for his time in prison and perform 500 hours of community service.{{cite web |url=http://www.foxnews.com/printer_friendly_wires/2007Jun28/0,4675,SiegelmanTrial,00.html |title=Siegelman, Scrushy Get Prison Terms |access-date=2009-05-22 |date=2008-06-28 |last=Johnson |first=Bob |publisher=Fox News}} Siegelman was sentenced on the same day to seven years and four months in prison, restitution of $181,325 to the state, three years' probation, a $50,000 fine, and 500 hours of community service upon his release. U.S. District Judge Mark Fuller would later rule, however, that Sieglman would not be required to pay the $181,325 in restitution.{{cite web |url=http://www.tuscaloosanews.com/article/20070710/NEWS/707100336/1007/TL02 |title=Siegelman not ordered to pay agency |access-date=2009-05-23 |date=2007-07-10 |last=Johnson |first=Bob |publisher=Tuscaloosa News |archive-date=2009-06-23 |archive-url=https://web.archive.org/web/20090623155941/http://www.tuscaloosanews.com/article/20070710/NEWS/707100336/1007/TL02 |url-status=dead }} The restitution was based on debts accumulated by the State of Alabama during a fraudulent warehouse deal, but Siegelman was acquitted on charges related to the deal. Upon sentencing, Scrushy and Siegelman were taken into custody and transported to a federal prison in Atlanta, Georgia, where they briefly shared a cell.{{cite web |url=http://newsok.com/article/3086242 |title=Scrushy moved out to Oklahoma City site |access-date=2009-05-22 |date=2007-07-18 |publisher=The Oklahoman}}

=Appeal=

Following the trial and conviction, Scrushy, Siegelman, and the prosecutors all indicated they would appeal.{{cite web |url=https://www.usatoday.com/money/economy/2007-06-28-3093403108_x.htm |title=Siegelman, Scrushy to appeal sentences |access-date=2009-05-22 |date=2007-06-29 |last=Johnson |first=Bob |publisher=USA Today}}{{cite web |url=https://www.latimes.com/archives/la-xpm-2005-jul-14-fi-scrushy14-story.html |title=U.S. Drops Scrushy Appeal |access-date=2009-05-22 |date=2005-07-14 |work=Los Angeles Times}} Scrushy and Siegelman vowed to appeal their convictions and sentences, while the prosecution announced its desire to appeal a judge's decision to remove charges of perjury from Scrushy's indictment. Prosecutors quickly dropped their appeal, and U.S. Attorney Alice Martin indicated they had reconsidered.

Awaiting appeal, Scrushy was briefly transported to a transfer site for inmates in Oklahoma City before being sent to his permanent location at a low-security federal prison in Beaumont, Texas. Scrushy filed a request with the 11th U.S. Circuit Court of Appeals, asking to be released on appeal bond.{{cite web |url=http://www.boston.com/news/nation/articles/2007/10/04/judge_denies_former_ala_govs_release/ |title=Judge denies former Ala. gov's release |access-date=2009-05-22 |date=2007-10-04 |last=Johnson |first=Bob |publisher=Boston Globe}} The 11th US Circuit Court of Appeals rejected Scrushy's request to be released on bond, citing an earlier ruling written by U.S. District Judge Mark Fuller.{{cite web |url=http://www.oanow.com/oan/news/local/article/scrushy_makes_another_prison_release_request/13263/ |archive-url=https://archive.today/20080720114456/http://www.oanow.com/oan/news/local/article/scrushy_makes_another_prison_release_request/13263/ |url-status=dead |archive-date=2008-07-20 |title=Scrushy Makes Another Prison Release Request |access-date=2009-05-22 |date=2008-05-10 |last=Johnson |first=Bob |publisher=Opelika-Auburn News}} The ruling was issued while Scrushy was on bond awaiting sentencing, and deemed him a flight risk. Scrushy again filed for release in February and May 2008 but both requests were denied.{{cite web |url=http://www.alabamas13.com/story/21396824/scrushy-offers-to-post-most-assets-for-prison-release-on-appeal |title=Scrushy Offers To Post Most Assets For Prison Release On Appeal |access-date=2009-05-22 |date=2008-02-16 |publisher=NBC13 News |url-status=dead |archive-url=https://archive.today/20130628094645/http://www.alabamas13.com/story/21396824/scrushy-offers-to-post-most-assets-for-prison-release-on-appeal |archive-date=2013-06-28 }}{{cite web |url=http://www.al.com/news/birminghamnews/index.ssf?/base/news/1210407335197220.xml&coll=2 |title=Richard Scrushy asks federal court for the third time to free him from prison while he appeals conviction |access-date=2009-05-22 |date=2008-05-10 |last=Chandler |first=Kim |publisher=Birmingham News |url-status=dead |archive-url=https://web.archive.org/web/20110609100506/http://www.al.com/news/birminghamnews/index.ssf?%2Fbase%2Fnews%2F1210407335197220.xml&coll=2 |archive-date=2011-06-09 }}

In March 2009, a panel of three judges from the 11th U.S. Circuit Court upheld all charges against Scrushy and dismissed two of the seven charges against Siegelman.{{cite web |url=http://blog.al.com/spotnews/2009/05/us_appeals_court_rejects_forme.html |title=U.S. appeals court won't hear Siegelman, Scrushy cases |access-date=2009-05-22 |date=2009-05-15 |last=Chandler |first=Kim |publisher=Birmingham News}} A further appeal for a full court review of the case was also denied by the 11th U.S. Circuit Court of Appeals on May 15, 2009. Scrushy appealed to the U.S. Supreme Court. On June 29, 2010, the Supreme Court issued an order directing the appeals court to review the case in light of their (Supreme Court's) ruling the previous week on the "honest services" fraud statute.{{cite web|title=High court wants Scrushy conviction reviewed|website=NBC News |date=29 June 2010 |url=https://www.nbcnews.com/id/wbna37996326}} On June 4, 2012, the Supreme Court rejected Scrushy's appeal, allowing his public corruption and bribery convictions to stand.{{cite web |url=http://articles.cnn.com/2012-06-04/justice/justice_scotus-alabama-governor_1_scrushy-and-siegelman-corruption-convictions-honest-services?_s=PM:JUSTICE |title=High court allows Siegelman, Scrushy corruption convictions to stand |access-date=2012-08-02 |date=2012-06-04 |last=Mears |first=Bill |publisher=CNN |archive-url=https://web.archive.org/web/20120622114646/http://articles.cnn.com/2012-06-04/justice/justice_scotus-alabama-governor_1_scrushy-and-siegelman-corruption-convictions-honest-services?_s=PM:JUSTICE |archive-date=2012-06-22 |url-status=dead }}{{cite web |url=http://www.mainjustice.com/2012/06/04/high-court-rejects-appeal-of-ex-alabama-governor-hospital-executive/ |title=High Court Rejects Appeal of Ex-Alabama Governor, Hospital Executive |access-date=2012-08-02 |date=2012-06-04 |last=Murphy |first=Elizabeth |publisher=Main Justice |url-status=dead |archive-url=https://web.archive.org/web/20120608120522/http://www.mainjustice.com/2012/06/04/high-court-rejects-appeal-of-ex-alabama-governor-hospital-executive/ |archive-date=2012-06-08 }}

=Birmingham civil trial=

Scrushy was returned to Alabama on May 7, 2009, in order to testify in a new civil trial in a Birmingham court. Former HealthSouth investors had sued him seeking recompense for money lost due to the fraud of which Scrushy was acquitted in 2005.{{cite web |url=https://www.wsj.com/articles/SB124303742420548959 |title=Scrushy Again Blames Underlings for Fraud |access-date=2009-07-07 |date=2009-05-08 |first=Bill |last=Esterl |publisher=Wall Street Journal}} While opposing counsel claimed Scrushy was a "hands-on manager who treated the company as a personal piggy bank," he continued to assign blame to his subordinates and maintain that he did nothing wrong. Closing arguments were heard in the trial on May 27, 2009.{{cite web |url=http://blog.al.com/businessnews/2009/05/fate_of_richard_scrushys_perso.html |title=Fate of Richard Scrushy's personal fortune now in the hands of Jefferson County Circuit Judge Allwin Horn |access-date=2009-05-30 |date=2009-05-27 |last=Hubard |first=Russell |publisher=Birmingham News}} On June 18, 2009, Judge Horn ordered Scrushy to pay $2.87 billion in damages.{{cite web |url=http://blog.al.com/businessnews/2009/06/judge_richard_scrushy_is_respo.html |title=Judge: Richard Scrushy is responsible for HealthSouth fraud |access-date=2009-05-30 |date=2009-06-18 |last=Hubard |first=Russell |publisher=Birmingham News}} Judge Horn stated, "Scrushy knew of and actively participated in the fraud" and referred to Scrushy as the "CEO of the fraud". As expected,{{cite web |url=https://www.wsj.com/articles/SB124533875598827811 |title=Scrushy Found Liable in HealthSouth Shareholder Suit |access-date=2009-06-18 |date=2009-06-18 |last=Baurlein |first=Valerie |publisher=Wall Street Journal}} Scrushy appealed the judgment to the Alabama Supreme Court. On January 28, 2011, Scrushy lost his appeal of the civil verdict.{{cite web |url=https://www.bloomberg.com/news/2011-01-28/richard-scrushy-loses-appeal-over-healthsouth-2-88-billion-civil-judgment.html |title=Ex-HealthSouth CEO Scrushy Loses Appeal Of $2.88 Billion Civil Judgment |access-date=2012-08-02 |date=2011-01-28 |last=Beasley |first=David |publisher=Bloomberg}}

=Release=

According to the Federal Bureau of Prisons website, the 59-year-old Scrushy was moved in April 2012 from the federal prison in Beaumont, Texas into the supervision of the community corrections management field office in San Antonio.{{cite web |url=http://blog.al.com/spotnews/2012/04/former_healthsouth_ceo_moved_f.html |title=Former Healthsouth CEO Richard Scrushy moved from Texas prison into halfway house |access-date=2012-06-01 |date=2012-04-15 |first=Kent |last=Faulk |publisher=Birmingham News (Alabama, USA)}} Following his move to a halfway house, Scrushy was moved to home confinement, and then, on July 25, 2012, was released from federal custody.

See also

Notes

{{reflist|2}}

References

  • {{cite book |last1=Matulich |first1=Serge |last2=Currie |first2=David |title=Handbook of Frauds, Scams, and Swindles: Failures of Ethics in Leadership |edition=Illustrated |date=June 2008 |publisher=CRC Press |isbn=978-1-4200-7285-3 |oclc=214285931 |pages=315–351 |chapter=Richard Scrushy: The Rise and fall of the King of Health Care |ref=Mat08}}
  • {{cite book |last1=Jennings |first1=Marianne |title=The Seven Signs of Ethical Collapse |edition=annotated |date=August 2006 |publisher=St. Martin's Press |location=New York |isbn=0-312-35430-4 |oclc=63297926 |pages=[https://archive.org/details/sevensignsofethi00mari/page/214 214–216] |chapter=Innovation Like No Other |ref=Jen06 |chapter-url-access=registration |chapter-url=https://archive.org/details/sevensignsofethi00mari/page/214 }}
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  • {{cite book |last1=Markham |first1=Jerry |title=A Financial History of Modern U.S. Corporate Scandals: From Enron to Reform |edition=illustrated |date=December 2005 |publisher=M.E. Sharpe |location=Armonk, N.Y |isbn=0-7656-1583-5 |oclc=58536658|pages=360–364 |chapter=Full Disclosure Fails |ref=Mar05}}
  • {{cite book |last1=Bartlett |first1=Donald |title=Critical condition: how health care in America became big business--and bad medicine |date=October 2005 |publisher=Broadway Books |location=New York |isbn=0-7679-1075-3 |oclc=62260293 |page=81 |chapter=Wall Street Medicine |ref=Bart05}}