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Scrushy ordered to Ala. for HealthSouth testimony



By JAY REEVES, AP
05 June 2008 @ 05:02 pm EST

BIRMINGHAM, Ala. - A federal judge ordered fired HealthSouth Corp. CEO Richard Scrushy returned to Alabama from prison to testify in civil lawsuits over the huge fraud that nearly bankrupted the rehabilitation chain he founded.

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Scrushy's attorney said Thursday he will fight the order because Scrushy doesn't want to leave his fenceless federal prison in Beaumont, Texas, for a brief stay in a county lockup near Birmingham.

"It's just an objection to travel," said Martin Adams, a Scrushy son-in-law who also represents him in court. He said Scrushy otherwise is "happy to tell his side of the story."

The federal magistrate judge's order, filed Monday, directed U.S. marshals to return Scrushy to Alabama for a videotaped deposition set to begin June 16 before more than two dozen lawyers.

An attorney for investors suing Scrushy, investment house UBS and Ernst & Young accounting for at least $1 billion over the fraud said Scrushy "doesn't want to be inconvenienced."

"His arrogance is just overwhelming," said Doug Jones. "He wants 20 or 25 lawyers and theirs staffs to trek to Beaumont to see him."

Scrushy didn't testify during either of his two federal criminal trials. One ended with his acquittal in the HealthSouth fraud in 2005, and the other resulted in his conviction with former Gov. Don Siegelman in a bribery conspiracy in 2006.

Scrushy is serving a nearly seven-year term, while Siegelman recently was freed on appeal bond from his more than seven-year sentence. A judge refused to free Scrushy during the appeal after prosecutors said he might try to flee the country.

While Scrushy's testimony would be closed to the public, at least parts of the transcript likely could be made public later.

The one-time CEO previously gave sworn testimony to the Securities and Exchange Commission before being indicted--he denied any wrongdoing--and he gave confidential testimony in a dispute with HealthSouth over attorney's fees.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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