Scrushy Trial Judge Urges Jury to Press On

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By Carrie Johnson
Washington Post Staff Writer
Thursday, May 26, 2005

BIRMINGHAM, May 25 -- A federal judge overseeing the fraud trial of former HealthSouth Corp. leader Richard M. Scrushy on Wednesday gave jurors detailed instructions about a conspiracy charge filed against Scrushy and told the jury she hoped they "will continue to work hard to reach a unanimous decision."

U.S. District Judge Karon O. Bowdre was responding to two notes jurors sent Tuesday in which they said, "We can not unanimously agree on a verdict," and cited inconsistencies in the jury instructions and the verdict form they were given last week.

The day ended without further word from the jury, which has been deliberating for five days. Prosecutors accuse Scrushy of standing at the center of a $2.7 billion accounting fraud that lasted for seven years at the Birmingham-based rehabilitation hospital chain.

He is the first chief executive to face criminal charges under the 2002 Sarbanes-Oxley Act, which requires corporate officials to vouch for the accuracy of financial statements.

Outside the courthouse Wednesday, Scrushy told reporters, "There is not one shred of evidence against me."

But in the course of the four-month trial, prosecutors called nearly three dozen witnesses, including all five of the company's chief financial officers, who implicated Scrushy in the earnings manipulation scheme.

U.S. Attorney Alice H. Martin said she "hoped" the guidance from the judge helped alleviate the apparent confusion among the jury about the complex 37-page verdict form they are supposed to complete.

Jury notes over the past several days raised the possibility that the panel was divided and would not be able to render a verdict. But the group continued its work Wednesday afternoon without further public signs of dissent.

Jurors will resume their work Thursday morning.


© 2005 The Washington Post Company

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