Deadlocked Scrushy jury to try again

June 06, 2005|Associated Press

BIRMINGHAM, Ala. -- Deadlocked jurors return today for more deliberations in the trial of Richard Scrushy, the fired HealthSouth Corp. chief executive charged with orchestrating the $2.7 billion overstatement of the medical-center chain's earnings.

On the 10th day of deliberations on Friday, jurors sent a note to US District Judge Karon Bowdre, saying they were unable to reach a verdict.

Prosecutors and the defense ruled out any plea deal as the possibility of a mistrial loomed.

Prosecutor Richard Smith said there had been no discussions of a settlement.

Scrushy is the first CEO charged with violating the Sarbanes-Oxley corporate reporting law. In addition to conspiracy, Scrushy is also accused of fraud, false reporting, and money laundering. He is accused of directing an accounting scheme at the chain of rehabilitation and medical services centers over seven years, beginning in 1996. The defense blamed the fraud on Scrushy's subordinates.

Scrushy, 52, could be sentenced to what amounts to life in prison if convicted. Prosecutors also are seeking $278 million in assets.