Risk Management

Scrushy, Former Governor Convicted

The erstwhile HealthSouth executive was found guilty of donating $500,000 to Don Siegelman, once the governor of Alabama, in return for a seat on a...
Stephen TaubJune 29, 2006

Richard Scrushy may find himself behind bars after all.

On its eleventh day of deliberations, a federal jury has convicted the founder and former chief executive officer of HealthSouth on a number of charges involving former Alabama governor Don Siegelman, according to the Birmingham Press-Register. Siegelman himself was found guilty on 6 of 32 criminal counts.

According to Bloomberg, Scrushy was found guilty of donating $500,000 to Siegelman’s campaign for a state lottery in return for a seat on an Alabama hospital regulatory board. That nine-member group, reported the wire service, wields a large amount of power over which services can be offered by health-care providers in the state.

Each faces up to 30 years in prison, according to Bloomberg. However, Scrushy does not have a criminal record; last year he was acquitted of all charges regarding the massive accounting fraud at HealthSouth, and he has accused the government of bringing the current charges in retaliation for his acquittal. The Press-Register pointed out that the minimum sentence for all the charges in this case is probation, noting that home confinement is also a possibility.

As for Siegelman, the trial took place during the run-up to the Democratic primary for governor; earlier this month he was defeated by Lucy Baxley, the current lieutenant governor, in a bid to retake his former office. Siegelman blamed the charges for his defeat, reported the AP.

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