Business

Scrushy's trial reset

NEWS IN BRIEF — Posted Sept. 6, 2004

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A federal judge has rescheduled the fraud trial for ousted HealthSouth founder Richard M. Scrushy to begin on Jan. 5, 2005.

The jury trial in federal court in Birmingham, Ala., had been scheduled to start on Aug. 23, but U.S. District Judge Karon O. Bowdre pushed the date back in an order filed Aug. 16.

Scrushy has been accused by federal prosecutors of being the mastermind behind a $2.7 billion accounting scandal at HealthSouth. A grand jury returned an 85-count indictment against Scrushy in November 2003, with charges ranging from conspiracy to securities fraud. Scrushy has denied all charges against him.

Scrushy was fired from HealthSouth after the scandal was revealed in March 2003. Since then, at least 19 former executives at the outpatient services giant have faced criminal charges stemming from the investigation.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/09/06/bibf0906.htm.

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