Thursday, May 28, 2009
Pied Piper Ed Peters
Wednesday, May 27, 2009
Liars and Alice H. Martin
Lawyers for Richard Scrushy said in their closing statements of his civil trial the former HealthSouth Corp. chief executive was torpedoed by dishonest subordinates. Jim Parkman told Jefferson Circuit Judge Allwin Horn shareholders for the company put on witnesses who had already pleaded guilty to the fraud at the Birmingham-based company. "Bill Owens was the architect of the fraud," Parkman said, speaking of the the company's former chief financial officer, who is imprisoned after pleading guilty. "He has lied and lied." Parkman also said two witnesses -- former Scrushy bodyguard Jim Goodreau and former HealthSouth in-house lawyer Bill Horton -- gave testimony in Scrushy's favor. Goodreau, a former Alabama State Trooper, and Horton, a lawyer in good standing, should be believed over the five former CFOs who pleaded guilty and blame Scrushy, he said.
Thursday, May 21, 2009
No Knowledge
BIRMINGHAM, Ala. -- Richard M. Scrushy, former chairman and chief executive of HealthSouth Corp., said he had "no knowledge" of the $2.6 billion fraud that nearly destroyed the rehabilitation company he founded, in his first public testimony on the matter. Mr. Scrushy, who was acquitted of criminal charges related to the HealthSouth accounting scandal in 2005, took the witness stand Wednesday in the trial of a civil action against him by HealthSouth shareholders. The former CEO, who is serving a prison term in an unrelated case, didn't testify publicly during the five-month HealthSouth criminal trial. In Wednesday's testimony, the 56-year-old Mr. Scrushy sought repeatedly to distance himself from the five chief financial officers who served under him at HealthSouth, all of whom pleaded guilty in connection with the fraud. They have testified that Mr. Scrushy was complicit in systematically overstating HealthSouth's earnings in a scheme that spanned about six years. "I certainly had no knowledge of anything they were doing in terms of moving numbers around in the company," Mr. Scrushy testified Wednesday. The former CEO, who wore a dark-gray suit with a burgundy tie, and occasionally donned wire-rimmed glasses to read financial documents, said HealthSouth employed the auditing company that is now Ernst & Young at great expense, to ensure that its books were properly reviewed. He also underscored measures he said he implemented to ensure "moral and ethical" behavior at HealthSouth, such as creating a compliance program in its early days.
Tuesday, May 19, 2009
UPDATE: Blame Game in Nebraska
We finally heard the recording of the Nebraska Supreme Court hearing regarding the wrongful seizure of Louis Obad's Las Vegas bound money.
We wrote about this incident in early April.
In the hearing, State officials are blaming dual jurisdiction issues on why the Rove Racket's U.S. Attorney's Office in Nebraska had the right to seize Mr. Obad's money.
Remember, Mr. Obad never committed a crime. He simply was driving cross-country to Las Vegas and was pulled over for speeding. The Rove Racket saw over $40,000 and thought they had the right to seize it.
The Nebraska Supreme Court hearing can be heard here.
Monday, May 18, 2009
New Mexico Firing
The internal report concluded that Mr. Rove - along with Monica Goodling, former White House liaison for the Justice Department; former White House official Harriet Miers; and former Sen. Pete V. Domenici, New Mexico Republican - were involved in the "most troubling" firing - that of former New Mexico U.S. Attorney David Iglesias.
Despite Justice Department assertions that Mr. Iglesias was fired because of his job performance, the report concluded that he was removed because New Mexico Republicans complained to the White House and Justice Department about his handling of voter-fraud and public-corruption cases. Mr. Iglesias said Mr. Domenici pressured him to bring corruption charges against a Democratic state lawmaker before the 2006 election. Mr. Domenici has acknowledged calling Mr. Iglesias but said he did not pressure him to bring an indictment. The internal report concluded that an appointed prosecutor could conduct a more extensive investigation because several officials, including Mr. Rove, refused to cooperate. The report said it could not fully determine the role of the White House in the firings but did conclude that it was involved in at least three of the nine dismissals.