2 Charges Against Scrushy Tossed

The judge in Richard Scrushy’s federal fraud trial threw out two more charges against the HealthSouth Corp. founder Thursday but ruled that jurors still must consider three dozen other counts when deliberations start next week.

The ousted chief executive said he was “very pleased” with the ruling by U.S. District Judge Karon Bowdre, who dismissed a second of three Sarbanes-Oxley financial certification charges against Scrushy and a count accusing him of obstruction of justice.

“That was our goal for today, and it was achieved,” Scrushy said outside court after a hearing. Bowdre dismissed eight other charges earlier, including three perjury counts.

But prosecutors said Scrushy, 52, still faced a maximum sentence that amounts to life imprisonment and millions in fines if convicted of charges that he directed a $2.7-billion fraud at the rehabilitation and medical services chain.

Closing arguments are set for Monday, and jurors are expected to get the case the next day.

The panel initially will consider 36 counts against Scrushy, attorneys said. If they convict him, jurors will then consider 12 more charges seeking $278 million in assets under criminal forfeiture laws.

Prosecutors accuse Scrushy of leading an earnings overstatement to make it appear HealthSouth was meeting Wall Street estimates. Scrushy made about $250 million because of the scheme, they claim.

Scrushy, who did not testify, concedes that the accounting scheme occurred but blames it on 15 former executives who pleaded guilty.