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Scrushy, U.S. Will Restrict Comments About Trial

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From Bloomberg News

Indicted HealthSouth Corp. founder Richard Scrushy and federal prosecutors agreed Friday to a court order restricting public comments about his upcoming fraud trial.

U.S. Atty. Alice Martin said Scrushy and his lawyers had attempted to influence potential jurors by attacking the credibility of prosecutors, spreading lies and leaking information. The two sides agreed to accept a protective order limiting what attorneys can say after conferring with U.S. District Judge Karon Bowdre at the federal courthouse in Birmingham, Ala.

“The primary and overriding concern of the court must be Mr. Scrushy’s 6th Amendment right to a fair trial,” Bowdre said.

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Scrushy and his attorneys have kept a high profile since a March 2003 raid on HealthSouth’s offices in Birmingham and a subsequent fraud suit by the Securities and Exchange Commission. Martin said in a court filing that defense attorney Donald Watkins went on Birmingham-area radio shows to disparage witnesses and accuse her of withholding evidence. She said Scrushy and his lawyers should be silenced until his trial, now scheduled for August.

“Certain comments and actions by Scrushy’s counsel are threatening to undermine the guarantee of a fair trial by an impartial jury by poisoning the potential jury pool in the community,” Martin said in court papers.

Scrushy is accused of masterminding a plot to inflate assets, increase profit and boost the price of HealthSouth stock to meet Wall Street expectations. He has denied the allegations and pleaded not guilty in the $2.7-billion fraud.

Bowdre didn’t disclose what restrictions she would impose on the attorneys. The judge said she would enter her order Monday.

Federal prosecutors say Scrushy’s lawyers have held news conferences to discuss evidence that’s favorable to the defense. Scrushy and his wife have also appeared on their own television show, Martin said.

Scrushy responded to Martin’s claims by filing three complaints with the Justice Department accusing government officials of ethics breaches. In a news conference last month, Scrushy’s lawyers said Martin failed to turn over evidence.

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