Prosecutors rest case in Scrushy trial

BIRMINGHAM, Ala. – Prosecutors rested their case against fired HealthSouth Corp. CEO Richard Scrushy on Tuesday after 12 weeks of trial that included testimony by five former finance chiefs linking Scrushy to a $2.7 billion earnings overstatement.

The defense – which argues that the testimony by the CFOs and about two dozen other government witnesses proved no such link – asked U.S. District Judge Karon Bowdre to dismiss all charges.

Bowdre scheduled a hearing for Thursday on whether to throw out the case. Assuming she doesn’t, the defense will present its first witness later that day.

Scrushy is the first chief executive officer charged with violating the Sarbanes-Oxley corporate reporting law, passed in 2002. He also is accused of conspiracy, fraud, money laundering and obstruction of justice.

Scrushy went on trial Jan. 25, but the case has been delayed repeatedly by fights over evidence, juror illness and days off for spring break.

Outside the courtroom U.S. Attorney Alice Martin expressed confidence the government had proven Scrushy’s role in the fraud, saying it’s been “an easy story (to tell), but it’s been a long story.”

Defense lawyer Lewis Gillis called the government’s case “flimsy.” No decision has been made on whether Scrushy will testify, he said.

Scrushy is still facing 52 other counts.