Richard Scrushy goes to jail

NEWS IN BRIEF — Posted July 23, 2007

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HealthSouth founder Richard Scrushy was found innocent in a $2.7 billion accounting scandal at his former company that resulted in convictions or guilty pleas by 18 other HealthSouth executives. But Scrushy has ended up in jail anyway.

A U.S. District Court judge in Birmingham, Ala., on June 28 sentenced Scrushy to six years and 10 months in prison for his conviction last year related to a bribery and corruption scandal involving former Alabama Gov. Donald Siegelman. Scrushy was found guilty of paying $500,000 to a foundation set up by Siegelman in exchange for a seat on the state's health regulatory board. The foundation was used to pay for an effort to establish a state lottery, although the effort failed.

The judge acknowledged that Siegelman did not profit personally from the donation but that the deal violated the public trust. Siegelman was sentenced to seven years.

Both men have said they will appeal their convictions and sentencing.

Note: This item originally appeared at

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