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Former Alabama governor, ex-HealthSouth CEO convicted of bribery, fraud

[JURIST] Former Alabama Governor Don Siegelman [official profile; campaign website] and former HealthSouth [corporate website] CEO Richard Scrushy [JURIST news archive] on Thursday were convicted [DOJ press release] of federal bribery and fraud charges [JURIST report]. Siegelman was convicted on 10 counts, including bribery, conspiracy, and mail fraud. Scrushy was found guilty of fraud and both were also convicted in connection with a $500,000 payment from Scrushy for Siegelman's 1999 campaign debts in exchange for a seat on a state-operated review board that regulates hospitals. Prosecutors said Siegelman and Scrushy face up to 30 years in prison for their crimes.

Thursday's verdicts came a year after Scrushy was acquitted [JURIST report] on charges of wire and mail fraud, money laundering, conspiracy, and violations of the Sarbanes-Oxley Act [summary] in a scheme to overstate earnings and inflate HealthSouth's stock price between 1996 and 2002. Bloomberg News has more. The Montgomery Advertiser has local coverage.

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