Scrushy, ex-Alabama governor indicted on new corruption charges

[JURIST] A federal grand jury on Monday indicted former HealthSouth CEO Richard Scrushy [defense website] Richard Scrushy and Former Alabama Gov. Don Siegelman [official profile] on fresh charges of corporate corruption, the latest in a series of allegations against the men. The new indictment accuses Scrushy of paying off Siegelman for a seat on a state health regulatory board and accuses both men of wielding improper influence over board members. Last month, fraud claims against Scrushy were dismissed [JURIST report] and in October, Siegelman pleaded not guilty [JURIST report] after he and Scrushy were indicted for racketeering [JURIST report]. Previous Medicaid fraud charges against Siegelman have been dismissed. In June, Scrushy was acquitted [JURIST report] on charges of wire and mail fraud, money laundering, conspiracy, and violations of the Sarbanes-Oxley Act [summary]. Scrushy was the first CEO to be charged with violating the Act. The fresh indictment claims Scrushy made covert payments of $500,000 to Siegelman in exchange for an appointment to Alabama's Certificate of Need Review Board, which makes hospital expansion decisions. The indictment also accuses the pair of ensuring that Scrushy was replaced by another HealthSouth employee when he left the board. The indictment also alleges that payments of $3,000 and $8,000 were made to board members to advance HealthSouth's interests. AP has more.

 

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