Friday, February 04, 2005

Scrushy jury sees video of HealthSouth CEO

Jurors at Richard Scrushy's trial watched video of the former HealthSouth CEO exhorting and warning hundreds of employees at a 1998 meeting as another former top executive was indicted in what prosecutors describe as a huge fraud at the corporation.

In a DVD recording played Thursday on a big screen near the witness stand, a fast-talking Scrushy discussed management's "incredible control" of the rehabilitation chain and his own close watch over the company's finances and expenses.

"With the new budget team we have we are so tight," Scrushy said in the meeting, held in Orlando, Fla., for managers of hundreds of medical centers operated by HealthSouth nationwide. Prosecutors say HealthSouth's books were awash that year in more than $600 million worth of fraud ordered by Scrushy.

As testimony in his criminal trial continued, prosecutors announced that former HealthSouth president and director James P. Bennett had been indicted in the fraud, which prosecutors say overstated earnings by about $2.7 billion from 1996 to 2002.

Scrushy jury sees video of HealthSouth CEO

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