A witness who claims Richard Scrushy blew up in anger after being confronted about possible fraud at HealthSouth acknowledged he signed loan documents for the company despite suspecting they included bogus numbers.
The admission was made today by former vice president Leif Murphy, a government witness in Scrushy's corporate fraud trial. He testified that he is not under threat of prosecution.
During cross-examination, Scrushy attorney Jim Parkman suggested Murphy was a participant in the accounting fraud at HealthSouth because he signed the document in 1999.
Defense attorneys contend a group of executives carried out the accounting fraud without Scrushy's knowledge.
In questioning from Parkman, Murphy said he never reported his suspicions about HealthSouth's financial reports to lenders or other company directors after talking to Scrushy.
Murphy took the witness stand after former HealthSouth Finance Chief Bill Owens finished 11 days of testimony in which he claimed Scrushy directed the fraud.