Opening Arguments Set in HealthSouth Trial
A former HealthSouth Corp. executive goes to court this week in the second trial linked to a massive fraud at the medical services chain, and both sides want to keep jurors from hearing much about the first trial’s defendant, fired Chief Executive Richard Scrushy.
In a string of motions, prosecutors and defense lawyers sought to limit the number of courtroom references to Scrushy during the conspiracy and fraud trial of Hannibal “Sonny” Crumpler, a former controller in HealthSouth’s outpatient division.
Jury selection was last week, and opening arguments are set for today.
U.S. District Judge Virginia Emerson Hopkins already has granted a defense motion to prevent prosecutors from telling jurors that Crumpler’s lawyers, Art Leach and Les Moore, also represented Scrushy.
Scrushy was acquitted in June of all charges in a $2.7-billion fraud, and the verdict has been repeatedly criticized in Birmingham-area media and beyond.
“Counsel is concerned that there may be a negative atmosphere or attitude among jurors in this district as a result of Mr. Scrushy’s acquittal,” the defense said in a motion filed with the judge.
Meanwhile, Hopkins also granted a request by the government to bar the defense from commenting on rulings made by the judge in Scrushy’s trial.
Hopkins still must rule on other requests, including prosecutors’ attempt to bar jurors from seeing defense documents linked to Mike Plaia, who is Scrushy’s son-in-law and a close friend of Crumpler’s.
Former federal prosecutor Don Cochran said such motions weren’t typical in big conspiracy cases like the HealthSouth fraud.
“I expect what’s going on is that both sides, for different reasons, want to try and distance themselves from the previous trial,” said Cochran, who teaches law at Samford University in suburban Birmingham.
Crumpler, who was indicted just days before the start of jury selection in Scrushy’s trial, is accused of being part of the HealthSouth “family,” a group of managers who prosecutors say engineered the fraud at Scrushy’s direction.
Fifteen former HealthSouth executives pleaded guilty in the scheme, and some of them gave testimony during Scrushy’s trial implicating Crumpler.
Prosecutors claim that Crumpler helped the group determine how much fraud could be hidden in the division where he worked. He later became chief financial officer at HealthSouth spin-off Source Medical Solutions, where he allegedly gave auditors a letter overstating the amount of money Source Medical owed HealthSouth.
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The Week Ahead
Today
* The Federal Reserve reports consumer credit data for September.
Wednesday
* The Commerce Department reports on wholesale inventories for September.
* Earnings reports expected from Pixar Animation Studios and Federated Department Stores Inc.
Thursday
* The Commerce Department reports the U.S. trade deficit for September.
* The Labor Department reports October’s import and export prices.
* The University of Michigan releases its consumer sentiment index for October.
* Earnings reports expected from Dell Inc., Cisco Systems Inc. and Target Corp.
Friday
* The government bond market is closed for Veteran’s Day, but U.S. stock markets are open.
* Earnings report expected from DreamWorks Animation SKG Inc.
