Scrushy Jury Deadlocked on Charges
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Friday, June 3, 2005; 1:45 PM
BIRMINGHAM, June 3 -- Jurors deliberating the fraud trial of former HealthSouth Corp. leader Richard M. Scrushy told a judge Friday they were "unable to reach a verdict of guilty or not guilty of any/all counts."
U.S. District Judge Karon O. Bowdre called in the jury's 12 members and gave them instructions designed to help break the deadlock. The judge said that the trial, which began Jan. 25, has involved "a great deal of time and effort." She added that there is "no reason to believe this case could be heard by 12 people who are more conscientious."
Outside of the jury's presence, defense lawyers for Scrushy objected to the judge's instructions, which are known as an Allen or dynamite charge. Justice Department official Richard Smith told reporters gathered outside the courthouse that he was confident the jury would reach a unanimous decision.
"If they truly weigh the evidence . . . we will be able to get a verdict in this case," Smith said.
Scrushy is charged with more than three dozen offenses, including fraud and conspiracy in a $2.7 billion accounting fraud that rocked the rehabilitation hospital company he founded. He is the first chief executive to be accused of violating the 2002 Sarbanes-Oxley Act, which requires corporate leaders to vouch for the accuracy of their financial statements.
The trial included nearly three dozen government witnesses, including two forensic accountants and five of the company's former chief financial officers, who implicated Scrushy in the accounting fraud. Along the way, jurors heard testimony about such complex matters as accounting for acquisitions, property and equipment; and government payments for Medicare claims.
Scrushy has denied the charges and says he was duped by subordinates who sought to enrich themselves.
"I'm innocent of these charges," Scrushy said outside the courthouse. "I will say that till the day I die."
The jury resumed deliberations Friday afternoon. Both prosecutors and defense lawyers rejected the possibility that they would reach a plea deal.
