Federal prosecutors told a district court judge that taped conversations of HealthSouth Corp. founder Richard Scrushy are key to proving the government's charges that Scrushy was intimately involved in alleged securities fraud at the company and should be allowed as evidence at his Aug. 23 trial. Scrushy's attorneys had asked U.S. District Court Judge Karon Bowdre in Birmingham, Ala., to exclude the recordings, which were made without Scrushy's knowledge in March 2003 by then-Chief Financial Officer Bill Owens. Scrushy was indicted in November 2003 on 85 criminal counts in connection with an alleged $2.7 billion in accounting fraud at the rehabilitation company. So far, 15 former HealthSouth employees have pleaded guilty in the case.-- by Julie Piotrowski
U.S. says Scrushy tapes are key to federal case
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