Siegelman, Scrushy Found Guilty in Federal Court

June 29th, 2006

by Glynn Wilson

Former Alabama Gov. Don Siegelman and deposed HealthSouth founder Richard Scrushy were convicted of bribery, conspiracy and mail fraud Thursday afternoon in Montgomery by a diverse federal jury that had reported a deadlock after only a few days deliberating.

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Photo by Glynn Wilson
Don Siegelman: Guilty

Siegelman was convicted on seven counts, including five instances of mail fraud and one instance of bribery involving his dealings with Scrushy, along with conspiracy and obstruction of justice. He was acquitted on 25 other charges, including racketeering and extortion.

The conviction came in a show trial by the Bush Justice Department that will more than likely end Siegelman’s life-long political career, which began at the University of Alabama when he was the machine fraternity candidate who served as president of the Student Government Association in the early 1970s.

He went on to serve as executive secretary of the Alabama Democratic Party before getting elected to his first political office, secretary of state in 1978. He also served as attorney general and lieutenant governor before becoming governor and fulfilling his life-long dream in 1998.

Siegelman smiled when he exited the courthouse and talked to the media. He said he was shocked by the verdict and indicated confidence it will be overturned.

“We got a fair trial by a good judge and a great jury,” Siegelman said. “This is round one. The truth is we did pretty good in round one. I will take it to the U.S. Supreme Court if I have to.”

Siegelman’s attorney Vince Kilborn said he doesn’t expect the conviction to end Siegelman’s political career.

“He’s devoted to his philosophy and to the people of Alabama and I don’t think he’ll ever give that up,” Kilborn said.

“If I’m really guilty of this, then every other person in public office ought to look out because everybody is raising money and putting people on boards and commissions,” he said. “We’re going to win this case on appeal.”

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Photo by Glynn Wilson
Richard Scrushy: Guilty

Scrushy, who became the most wealthy and celebrated businessman in Alabama in the 1980s and 1990s, was convicted on all six mail fraud and bribery counts leveled against him, along with conspiracy for ostensibly buying a seat on a state health board with $500,000 in contributions to Siegelman’s lottery campaign war chest.

Scrushy also said he will be vindicated on appeal.

“This is not right,” he said. “I’m very shocked by this.”

“This is the worst miscarriage of justice since General Sherman burned Atlanta,” Scrushy’s attorney Terry Butts said.

Federal prosecutor Louis Franklin told the Associated Press he hopes the verdict sends a message to the political world.

“You shouldn’t take bribes,” he said. “You shouldn’t trade on your office.”

Siegelman’s former driver and then chief of staff Paul Hamrick, and state transportation director Mack Roberts, were found not guilty on all the charges leveled against them.

U.S. District Judge Mark Fuller allowed Siegelman and Scrushy to remain free on bond, the amount undisclosed, and gave attorneys time to file final motions in the case.

Siegelman said the legal costs for the Montgomery case have topped $1 million and supporters have not kicked in much to help this time around, as they did in his bid-rigging case in Tuscaloosa in 2004. He said he only earned about $20,000 last year practicing law.

“I’ve cashed in all my savings to do the trial,” Siegelman said. “You can’t expect people to support someone under indictment and going to trial.”

Alabama Democratic Party Chairman Joe Turnham reacted to the verdict today by saying everyone’s prayers are with Siegelman and his family “during this difficult time.”

“The Alabama Democratic Party has great faith in our jury system. While saddened for former Gov Don Siegelman, Democrats vow to continue working in a bipartisan way to rid our political system of any unethical behavior,” he said. “Just as Alabama recovered quickly after the felony conviction of Republican Gov. Guy Hunt, the citizens of Alabama will recover again and look with open hearts and minds at candidates with high integrity and vision in fall elections.”

He said the recent U.S. Senate Committee Report containing allegations that $13 million in Indian casino money was funneled for Bob Riley’s 2002 election, Alabama voters deserve a fresh ethical start and a real commitment to honest and transparent government.

“Lt. Governor Lucy Baxley is the only candidate for governor who has not been implicated in benefiting from illicit campaign contributions,” he said in a statement. “We are proud of Lt. Governor Baxley and all our Democratic nominees and know our Democratic team to be some of the most honest and ethical candidates to offer themselves for public office in many years.”

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4 Responses to “Siegelman, Scrushy Found Guilty in Federal Court”

  1. Alabama Improper Says:

    WOW, I’m kind of surprised about this outcome. Power to the people, I reckon.

  2. catboat Says:

    After watching Scrushy’s cynical antics with forming a “ministry” as if such an act would allow him to acquire a choir boy appeal in the face of impending corruption trials it proves satisfying to see this respiratory therapist turned cheating scumbag advance closer to his God of vengeance in federal prison. Enjoy your earned time behind bars with the photo of your yacht constructed from money squandered from Medicare and the life work of elderly and sick people whom you parasitised, Scrushy, you callous sociopath bastard.

  3. fast2write Says:

    Editor’s Note: This comment comes in via e-mail from an informal e-mail list of Siegelman Democrats. The author, Dr. John Macdougall, is a retired professor from the University of Alabama where he chaired the Political Science Department at one time.

    Like you all, I admired Don Siegelman for all the good that he tried to do for the people of Alabama over many years. I arrived here in 1975 and knew nothing of the state. I knew only what I read in the local papers or watched in the local news. Of all the politicians, he seemed to have a “new” style.

    He was an excellent speaker, was friendly to the humblest of citizens, had New Deal political values, and was serious about helping a poor state improve the lives of its poorest and other citizens. As Secretary of State, he tried to reform and modernize election practices. I volunteered a very little bit to help out locally in his effort. All I saw and learned about his efforts made me admire him more.

    Over many years, I read and listened carefully lest I hear that Don Siegelman had “gone bad” in the manner of ordinary politicians that I learned about. As far as I know, this was not the case.

    Over the years, the costs of campaigning seemed to escalate and all politicians …all politicians who hoped to be elected…had to hustle money from those who possessed it. We all knew this. It was a public secret that even our media both tolerated and misunderstood.

    So Don Siegelman, perhaps the most honest and compassionate politician in our state…becomes the target of political actors hostile to both decency and compassion. (Someone once told me that any time that the “Federals” want to find evidence for the corruption of most of our Sheriffs, they can find it and use it to put them in jail.

    Someone different once volunteered that if federal bank investors wanted to take a very close look at our financial institutions, they could probably find illegal practices in most of them.

    That’s the way it is. Everyone who knows anything (not me), knows about it. I expect that it’s much the same in political fundraising.

    For the past 25 years, I have regarded Don Seigelman as someone who tried to “go against the grain” and change our politics for the better in fundamental ways. I think he succeeded in unique ways.

    I feel great sadness for his family and friends and supporters and admirers.

    I don’t expect soon to see his kind again.

    From: jmacdougall(at)bellsouth(dot)net

  4. DrStanCoty Says:

    Dr. John Macdougall has said more eloquently than I, the very feelings I have held for Don Siegelman. When I first heard the charges against him(this time) I was amazed that anyone could see any value in them whatsoever. It has always been the case to reward those who work and/or contribute to political campaigns with appointments to various posts deemed worthy of said contribution.
    Aren’t our “Foreign Ambassadors” appointed according to their gifts and efforts to Presidential elections. It always seems to go back to who has the money gets the office. The main problem here is that only those “special interests” with huge war chests can get their man elected. Politicians these days are bought and paid for as soon as they enter office and the “common man” has no chance at all.
    Unless we have some sort of election fundraising reform and set term limits for our “Distinguished Gentlemen” things will never get any better. Unfortunately, the ones with the power to do the changing are the ones affected. ARRRRGH, CATCH 22.
    Aahh, Just let me say this, I have talked with former Governor Siegleman and seen him spend a few hours just listening to people. That is what impressed me about him, his ability to listen to anyone and everyone carefully and make them feel that their thoughts are important. I watched him closely and am certain that he WAS listening. This was very impressive to me and was what i liked most about the man. I really hope that this verdict is overturned.

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