HealthSouth’s Scrushy Seeks to Testify in Own Defense

HealthSouth Corp. former Chief Executive Richard Scrushy wants to testify in his own defense at his securities fraud trial, and his defense team is divided over whether such a move is advisable, an attorney said.

Scrushy, accused of a $2.7-billion fraud, wants to proclaim his innocence to jurors in Birmingham, Ala., federal court, said Jim Parkman, one of his defense lawyers. Five former finance chiefs have implicated Scrushy. Prosecutors said they hoped to rest their case next week.

Parkman said that exposing Scrushy to tough questioning by prosecutors was a gamble that could backfire. He also said that two other defense attorneys, Donald Watkins and Art Leach, favored letting Scrushy tell his story. Several witnesses have testified that Scrushy is a charismatic salesman who is used to getting his way.

“He could make a misstatement,” Parkman said. “And that one thing can kill you. Fear of the unknown ought to scare any lawyer. It scares me. I don’t want it blown over one little question.”

Defense attorneys say the decision on whether to put a defendant on the witness stand may be the most important one they face at trial. Former WorldCom Inc. CEO Bernard J. Ebbers testified at his accounting fraud trial, but was convicted March 15 after jurors rejected his story.

Since Scrushy’s trial began Jan. 25, prosecution witnesses have testified that he ran the fraud from 1996 to 2002 at HealthSouth, the largest U.S. operator of rehabilitation hospitals. Prosecutors said Scrushy also laundered money to live a lavish lifestyle and lied to U.S. investigators.