01 July 2005

SUN Editorial: That Old-Time Religion

Scrushy learns from Bush.--Dictynna

THE FEDERAL government's fraud and money-laundering case against Richard M. Scrushy, founder and former CEO of the HealthSouth Corp., appeared solid, if not airtight. His trial was preceded by guilty pleas from 15 other former executives of the nation's largest chain of rehabilitation hospitals and clinics in connection with $2.7 billion worth of accounting fraud. Five of the firm's former finance officers testified against Mr. Scrushy, saying he told them to cook HealthSouth's books to meet Wall Street's expectations. And yet, astonishingly, he was acquitted on all charges.

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