Business

Ousted HealthSouth chief launches local TV talk show in Alabama

Critics question the former CEO's motive as his trial approaches.

By Katherine Vogt — Posted March 22, 2004

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Richard Scrushy has been called everything from a health care visionary to a corporate scofflaw. Now his friends and foes can add another title to the list: television talk show host.

The flamboyant former HealthSouth leader has launched his own talk show on a local television station in Birmingham, Ala. It's designed to be "a forum in which leaders and visionaries of our community and nation can convey their ideas, dreams and goals," according to the show's Web site.

But some critics questioned whether Scrushy's foray into television was designed to influence community sentiment in advance of his August trial on fraud charges.

Attorney Doug Jones, who is representing HealthSouth stockholders in a civil lawsuit against the embattled company, told Reuters that launching the show "seems fairly transparent in terms of trying to sway a jury."

U.S. Attorney Alice Martin said federal prosecutors would be watching, according to published reports.

Scrushy's spokesman, Charlie Russell, says the ousted leader "absolutely will not" discuss the case on his show. However, Russell said the show would be used to "address a number of untruths and negative inferences in news stories that have been appearing for the last year about him personally."

Scrushy has been accused by federal prosecutors of masterminding the multibillion dollar accounting fraud at HealthSouth that was first revealed a year ago. He was indicted by a federal grand jury in November 2003 on 85 counts related to fraud. Since then he has steadfastly maintained his innocence, using a Web site to tell his side of the story.

The television show, called "Viewpoint," is co-hosted by Scrushy and his wife, Leslie. The 30-minute show aired its first episode on March 1 on WTTO, Channel 21, and was scheduled to air five mornings a week. The first guest was former Alabama Supreme Court Chief Justice Roy Moore, who was ousted from the bench in a fight over his refusal to take down a Ten Commandments monument in the courthouse.

Scrushy's church, Guiding Light Ministries, owned the airtime for the show and sold it to the former CEO, Russell said. He did not disclose the price. Scrushy is also selling advertising and had one sponsor as of the show's debut.

The same week the show debuted, prosecutors announced that two more former HealthSouth executives had agreed to plead guilty to criminal charges, bringing the total number to 17 since the fraud investigation got under way.

The latest cases stem from a bribery and kickback scheme related to HealthSouth's contract to provide a hospital in Saudi Arabia with staffing and management services for five years.

According to prosecutors, the director of the foundation that ran the hospital allegedly solicited a "finder's fee" from HealthSouth. Against the advice of counsel, the company allegedly agreed to pay the director $500,000 per year for five years in exchange for his agreement to execute the contract. Then HealthSouth officers allegedly devised a scheme to conceal the payments.

Vincent Nico and Thomas Carman, both former HealthSouth vice presidents, agreed to plead guilty to criminal charges in connection with the scheme, prosecutors said. If convicted, Nico faces up to 20 years in prison and Carman faces up to five. Both also could face fines of $250,000.

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External links

"Viewpoint," television show hosted by Richard and Leslie Scrushy (link)

News on Richard Scrushy from the former HealthSouth CEO (link)

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