Saturday December 11, 2004
Scrushy Challenges Secret Gov't Recordings
By JAY REEVES
BIRMINGHAM, Ala. - Lawyers for Richard Scrushy want to keep jurors from hearing secret recordings that prosecutors say link the fired HealthSouth Corp. CEO to massive fraud at the rehabilitation giant.
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Prosecutors contend Scrushy led a scheme to overstate HealthSouth earnings by some $2.6 billion to meet Wall Street expectations. Scrushy, who is free on $10 million bond, pleaded not guilty and blamed the scheme on subordinates led by Owens.
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In the recordings, made using a hidden digital transmitting device and a recording receiver, Scrushy and Owens are heard discussing phony financial statements at HealthSouth and what to do about investigators closing in on the scheme.
"I hate to go down there and just give the keys to them," Scrushy is heard saying in what prosecutors contend was a reference to keeping the fraud secret.
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Bruce Koenig, a former FBI agent who owns BEK TEK of Clifton, Va., said the recordings are full of stops and starts _ faults that make it difficult to know whether parts of conversations are missing. In one case, he said, a car radio is heard playing at a loud volume while people are talking.
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Separately, Scrushy's lawyers filed motions challenging the government's bid to keep jurors from hearing some evidence, including testimony about Scrushy's community work and religious beliefs.
After the HealthSouth fraud made headlines, Scrushy and his wife began hosting a five-day-a-week local television show that often includes ministers discussing their interpretations of the Bible.
more
http://durantdemocrat.com/articles/2004/12/10/ap/business/d86tm9b80.txt