Former HealthSouth CEO Scrushy asks for new trial, citing selective prosecution

By AP
Saturday, June 27, 2009

Scrushy asks judge for new trial in bribery case

MONTGOMERY, Ala. — Former HealthSouth CEO Richard Scrushy asked a judge to grant him a new trial Friday, saying he was a victim of selective prosecution when he was convicted of bribery in 2006.

Scrushy filed a motion claiming he and former Alabama Gov. Don Siegelman were convicted in the federal government corruption case because the U.S. Justice Department was trying to prevent Siegelman, a Democrat, from defeating Republican Gov. Bob Riley in the 2006 election.

The motion cites numerous allegations that have surfaced since the trial — allegations that led to a House committee investigation and Justice Department review of possible political interference.

The motion says Scrushy was prosecuted because he exercised his First Amendment right to make a contribution to Siegelman’s 1999 campaign for a statewide lottery. Prosecutors claimed Siegelman appointed Scrushy to a key hospital regulatory board in exchange for him arranging $500,000 in contributions to the lottery campaign.

Chief prosecutor Louis Franklin said Friday that he and other prosecutors were studying Scrushy’s motion and would have no immediate comment.

The 11th Circuit Court of Appeals earlier this year turned down Scrushy’s appeal of his conviction and upheld most of the conviction against Siegelman, but threw out two charges.

The appeals court upheld Scrushy’s almost seven-year prison sentence, but ordered U.S. District Judge Mark Fuller in Montgomery to hold a new sentencing hearing for Siegelman, who was originally sentenced to seven years in prison and is now free on an appeals bond.

Scrushy’s request for bond was denied and he is serving his sentence at the federal penitentiary in Beaumont, Texas.

Attorneys for Siegelman and Scrushy have said they plan to appeal the 11th Circuit ruling to the U.S. Supreme Court. Siegelman’s attorney, Vince Kilborn, said he did not expect the former governor to file a similar motion seeking a new trial. He said the former governor’s attorneys were focusing on preparing the appeal to the Supreme Court, which he expects will be filed in early August.

Scrushy’s motion also raised a number of other issues that have come up since the trial ended in June 2006, including allegations that some jurors communicated with each other by e-mail in violation of the judge’s orders, and the involvement in the case of U.S. Attorney Leura Canary, the wife of Republican operative Bill Canary. Leura Canary said she recused herself from the case in 2002, but the motion mentions the statements from a whistleblower in the U.S. Attorney’s office who said Canary continued to monitor it.

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