Scrushy Jurors Appear Divided

An Alabama jury appeared Friday to be split on one of the main charges against former HealthSouth Corp. Chief Executive Richard Scrushy, accused of orchestrating a $2.7-billion accounting fraud at the medical rehabilitation firm.

In its second day of deliberations, the federal jury passed a note to U.S. District Judge Karon Bowdre asking for clarification on the prosecution’s claim that Scrushy conspired to inflate Birmingham, Ala.-based HealthSouth’s profits from 1996 to 2002.

“If we can not decide unanimously one way or another, what happens?” the note read. It did not mention any of the 35 other charges, which include multiple counts of mail and wire fraud and money laundering.

Scrushy, a flamboyant 52-year-old multimillionaire who hosts a television show in Birmingham and regularly preaches in local Christian churches, could spend the rest of his life in a federal prison if found guilty on all the charges.

Jim Parkman, one of Scrushy’s lawyers, said the note did not indicate which way the jury was leaning in the case. He noted that it was possible jurors would deadlock on the lone conspiracy count but reach a verdict on other charges.

The jury seems to be asking “the right questions” and appears unlikely to rush to judgment, said Richard Smith, one of the federal government’s prosecutors in the case.

Deliberations are scheduled to resume Monday.

Prosecutors claim that Scrushy directed the massive fraud to inflate the value of his stock options and fund an extravagant lifestyle.

Scrushy’s defense team countered the government’s case by portraying their client as an unknowing victim of a fraud conceived by other HealthSouth executives who had cut deals to avoid harsh prison terms.