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Trials in Tyco, HealthSouth corporate fraud scandals get under way

[JURIST] Trials in two high-profile corporate fraud cases are under way, with the trial of former HealthSouth Corp. [official website] CEO Richard Scrushy beginning Tuesday and jury selection in the retrial of former Tyco Inc. [official website; JURIST Hot Topic] officials being completed. Scrushy faces 58 criminal charges in connection with $2.64 billion accounting scandal that came to light in 2003. He will be the first executive tried under the Sarbanes-Oxley Act [text, PDF] passed in 2002 to address accounting fraud. More than a dozen former HealthSouth officials have pleaded guilty and are expected to testify against Scrushy. Reuters has more. In the retrial of two former Tyco officials facing larceny charges for taking over $600 million in company funds, jury selection was completed Tuesday, and opening statements were scheduled for Wednesday. The first trial ended with a mistrial last April after a juror received a threatening phone call and letter during deliberations. AP has more.

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