Scrushy Indicted Again

By: Associated Press
By: Associated Press

Richard Scrushy is ready for the courtroom fight of his life. Again.

Just four months after being acquitted in a more than $2 billion fraud at HealthSouth, the ousted CEO faces unrelated federal charges.

Federal prosecutors claim Scrushy was part of a racketeering scheme to purchase a seat on the Certificate of Need Review Board, which decides on hospital expansions. Birmingham defense lawyer Donald Watkins lashed out today at prosecutors, accusing them of indicting Scrushy in a second case for spite.

Scrushy was indicted in the racketeering case in May, during his trial in Birmingham. But the charges remained sealed until yesterday. Three others also were indicted, including former Governor Don Siegelman.

Louis Franklin, a federal prosecutor, and U.S. Attorney Alice Martin, whose office prosecuted Scrushy in the fraud trial, denied any link between the racketeering charges and Scrushy's acquittal.


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