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Thursday, May 19, 2005

Scrushy Closing Arguments Completed, Case Heads to Jury

Question: How many former CFOs does it take to convince a jury that the CEO was responsible for a massive financial fraud? 

Federal prosecutors in Alabama are hoping that the answer to that question is "no more than 5."  That's how many former HealthSouth CFOs prosecutors lined up to testify against former CEO Richard Scrushy in the just-completed criminal trial that is now going to the jury.  As discussed in this article in the Washington Post, "all five of the company's former chief financial officers have pleaded guilty and testified that Scrushy was responsible for financial reports that deceived investors."  The article notes that Scrushy's defense was that he was "kept in the dark by duplicitous insiders."

Among other things, the future name of the University of Alabama's Scrushy-Striplin Field may hang in the balance.

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