Scrushy Lawyers Drop Gag Order Opposition 4/9/2004 7:02:00 PM
BIRMINGHAM, Ala., Apr 09, 2004 (AP Online via COMTEX) -- Attorneys for Richard Scrushy dropped their opposition and joined prosecutors Friday in agreeing to a gag order in the criminal fraud case against the fired HealthSouth CEO.
With the reversal, U.S. District Judge Karon Bowdre held a brief hearing and said she would issue an order later limiting public comment by everyone in the case.
"Certainly the interest of the court ... (is) that we have a fair trial in this case untainted by pretrial publicity," Bowdre said.
Neither prosecutors nor the defense would disclose details of the agreement.
"It's good for both sides," Scrushy attorney Abbe Lowell said, declining to comment further.
Bowdre said she was worried that Scrushy's right to be presumed innocent was in jeopardy and that he should not be "tried and convicted on the courthouse steps" and in the media. Prosecutors also have a right to a fair trial, she said.
Scrushy is free on $10 million bond with his trial set for Aug. 23 on federal charges of leading a scheme to overstate HealthSouth earnings to make it appear the company was meeting Wall Street forecasts. Scrushy has pleaded innocent, and the defense blames the fraud on one-time subordinates at the company.
A judge has scheduled a hearing for June 15 on Scrushy's request to dismiss key charges against him.
Scrushy's defense joined the request for a gag order after lengthy closed-door negotiations.
Both sides have accused the other of trying to manipulate public opinion about Scrushy, well known in the area for his longtime leadership of the Birmingham-based rehabilitation giant, which he helped found.
The defense claims prosecutors have tried to convict Scrushy in the minds of the public, using a string of guilty pleas by HealthSouth executives to turn opinion against him. Defense attorneys argued in court papers that prosecutors have leaked grand jury information about Scrushy, and President Bush's statements about corporate fraud during a pair of trips to Birmingham were aimed at Scrushy.
Prosecutors denied any wrongdoing or White House influence. They said the defense was to blame for most publicity, some of which they said violated state bar rules meant to prevent swaying potential jurors.
Scrushy has a personal Web site about the case and has started a TV talk show sponsored by a bank run by defense attorney Donald V. Watkins. Watkins also has gone on a popular radio talk show to criticize prosecution witnesses, the government said in court papers.
The defense held a news conference on the courthouse steps a month ago after filing their third complaint accusing the government of misconduct. None of the complaints have led to sanctions, prosecutors said.
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