Episode Transcript
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ladies and gentlemen there
2:53
can be no clear choice for governor
2:55
of alabama than , choice
2:57
between fab james and on soderman
3:00
the people of alabama deserve alabama governor
3:02
with the will to be governor and
3:04
the ability to actually get something done
3:07
that is not fab james that
3:09
is don siegelman the people
3:11
of alabama deserve alabama governor who give
3:13
the students of this data voluntary preschool
3:16
program spite of the art computers
3:18
in college scholarships for every hard to
3:20
graduate and pay for it with an
3:22
alabama lottery for education
3:25
that certainly is not fall james
3:27
that is don siegelman the
3:29
people of alabama deserve alabama governor who
3:31
has who has to fight school balance
3:33
that's not for germs the people
3:36
of alabama deserve a governor who
3:38
will get rid of dangerous portable classrooms
3:41
that is not fog james the
3:43
people of alabama deserve a governor
3:45
who raise the standards and raise the quality
3:48
of education and k through twelve
3:51
that is not fall james that
3:53
is done several months
3:56
republicans in alabama were terrified
3:58
of don siegelman
3:59
the not just because he had a black belt in karate
4:03
no don siegelman what a democrat
4:05
the charming good looking experienced
4:08
democrat but enough southern twang
4:11
the flip votes in the bible belt like
4:13
bill clinton or jimmy carter the
4:15
computer in national politics looking like
4:17
an absolute certainty
4:19
don siegelman what the like to beat that the
4:21
first governor of alabama the nineteen
4:24
ninety nine
4:25
you'd already served of the states lieutenant
4:27
governor before that he was alabama's
4:29
attorney general before that he
4:32
was the secretary of state
4:34
riggleman star been steadily rising
4:36
over the years
4:38
than and a rare occurrence
4:40
the against her lifelong conditioning
4:42
the people of alabama voted
4:44
for a democratic governor with
4:47
don siegelman in charge the automotive
4:49
industry thrived in alabama mercedes
4:52
benz toyota and honda all
4:55
committed to building major assembly lines
4:57
in the state riggleman also
4:59
presided over seven electric chair
5:01
executions included the
5:03
first female executed in alabama
5:06
since nineteen fifty seven august
5:09
fun and success was enough to make an alabama
5:11
republican so angry the could marry
5:13
a child the nothing
5:15
may be weird little loose skin flap
5:17
summer next tremble more than siegelman
5:20
pet project
5:21
riggleman the absolute monster
5:24
introduce a referendum to establish
5:27
a state lottery fund education
5:30
those are some of the things that things will do
5:32
will will pay for my scholarship plan with
5:35
plan alabama lottery for education
5:37
will pay for our computers with an alabama
5:40
lottery for education and are preschool
5:43
will be paid for with an alabama
5:45
lottery for education
5:47
i don't think a nice
5:49
he common campaigned on this idea the
5:52
people of alabama elected him because
5:54
of this idea nevertheless
5:56
the referendum was defeated and
5:59
alabama's as these and ranking among states
6:01
continues to languish at the bottom spider
6:05
the feed don siegelman remained
6:07
popular in alabama according
6:09
to the associated press he was
6:11
reelected as governor in two thousand and
6:13
two in a closely contested
6:15
race with us house represented of bob
6:18
riley the victory was
6:20
short lived the next
6:22
morning devoted chains there
6:24
have been a boating machine malfunction and
6:26
baldwin county apparently one
6:28
of the most republican counties in the state
6:32
the third and final feathered up they did vote
6:34
totals had appeared on the probate court
6:36
website in the middle of the night
6:38
the only change was the don siegelman pets
6:40
sixty three hundred fewer votes than
6:43
he had a few hours earlier
6:45
there's enough to put the race the bob riley
6:48
no other races on the ballot were affected
6:51
adrian john's baldwin county
6:53
judge and bob riley supporter field
6:56
the vote then moved to certify the
6:58
results immediately on wednesday
7:00
after the election even though tradition
7:02
and statutes suggested friday at noon
7:05
and alabama republican attorney general
7:07
bill prior
7:09
the mouth this is the both had already been certified
7:12
the any recount of the sealed material
7:14
could not occur without a court order
7:16
in other words getting one who try to
7:18
counter both would be jailed or
7:21
, have sealed material cannot
7:24
a car without a court order and
7:27
finding that are voting machine
7:29
or precinct failed to make
7:31
failed to
7:33
witnesses say the bob riley chief of staff
7:35
damn ganz wasn't baldwin county
7:37
dot night with a laptop the
7:40
afghans was reportedly a boating technology
7:42
expert and suggested
7:44
that damn gowns and the baldwin county
7:47
republicans fudge the numbers behind
7:49
closed doors and voting
7:51
data all but confirmed that confirmed
7:53
that reviewed analysis of the results
7:55
found a clear data manipulation and
7:57
statistical abnormalities
7:59
any attempt to change the result
8:01
of the election at this point
8:03
would require an arduous court battle
8:06
it could take months probably years that
8:09
could potentially turn the state apart
8:11
don siegelman the just wasn't worth
8:14
it
8:15
the one november six two thousand two
8:17
the conceded last
8:19
, gods like continue
8:21
to shine upon the great
8:23
state of alabama fight you god
8:26
bless you and good night
8:30
now what you have
8:32
a painful decision that he is
8:34
dropping has requests for without saying
8:36
congress and bob riley will be alabama's next
8:38
governor
8:39
oh you're not over other news a federal
8:41
judge says the ten commandments monument in
8:43
the alabama judicial building violates
8:46
the constitution ban on government promotion
8:48
of
8:50
the other side of town the bob riley
8:52
chambers ushering in a new era for
8:54
steam ahead quite literally
8:57
the , governor of alabama was transported
8:59
to his ceremonial stage v a locomotive
9:02
where , it a new day in the heart of
9:04
dixie
9:28
well
9:36
the alabama was riley country
9:39
the you know who was not welcome and
9:41
the riley country
9:43
rob
9:44
i mean
9:45
probably
9:47
why was referring to the style
9:50
hello i'm gov barbara i
9:53
believe we're blessed to live in alabama
9:56
we have a quality of lab that is unmatched
9:58
anywhere else in the world
10:01
i never wanna see anything happen that would
10:03
degrade our quality of life and
10:05
there's no doubt mama the
10:07
gambling does the great our quality
10:10
of life
10:11
the corrupts alabama nurse for people
10:13
who little better but every
10:15
year there's an effort into legislature
10:17
to expand gambling so i
10:19
signed an executive order in december
10:21
to create a task force on illegal
10:23
gambling gambling
10:27
would not be tolerated and alabama
10:30
why not because alabama
10:33
is a morally righteous state that
10:35
would never allow such cultural degradations
10:38
within it's borders having
10:41
but because of corruption gambling
10:43
is tolerated on reservations
10:46
in mississippi a bordering state
10:48
of alabama
10:49
but the choctaw owned pearl
10:51
river resort and philadelphia mississippi
10:54
those depend on tourist from alabama
10:57
who can't legally gamble on their own state
11:00
though the casinos and check their money into
11:02
alabama politics to make sure
11:04
it always stays that way
11:07
don siegelman proposed a lottery was
11:09
too close to legalize gambling for
11:11
the talk of comfort
11:13
the alabama republicans wanted siegelman
11:15
stopped for no other reason than he
11:17
was a democrat
11:18
strange bedfellows were made me
11:22
, mama
11:25
million dollars one interesting one alabama
11:29
most to see me in a democracy
11:32
or maybe
11:38
aber marked as a notorious
11:40
lobbyists later son that's the six
11:42
years in prison on a fraud conviction
11:44
related to a different casino we
11:47
want the bag man for an underground network
11:49
of republican money millions
11:51
of dollars are funneled and alabama
11:53
the how bob riley defeat don siegelman
11:56
alabama's new gambling task force
11:59
was bob
11:59
i [unk] tip of the cap to his native american
12:02
neighbors to the west
12:03
thanks for the money oh and all
12:06
of this land and everything according
12:09
to don siegelman go follow that
12:11
money all roads lead to
12:13
president george w bush as chief
12:15
of staff karl rove becoming
12:18
queens wasn't dentist abusing his power
12:21
whispers surface about siegelman planning
12:23
to make another run for governor in two thousand
12:25
and four
12:26
the department of justice stop a single
12:28
month political dreams are you darling
12:30
you from
12:32
the were prosecutor alice martin
12:35
the led to the don siegelman and his cronies
12:37
how conspired with a doctor to regain medicaid
12:40
contract rocco
12:42
accusations that the former governor had
12:44
accepted extravagant gifts from his supporters
12:47
however on day one of the trial
12:50
a judge throughout most of the prosecution's
12:52
evidence case was laughable
12:55
all charges against don siegelman for
12:57
drop those
13:01
, all over my my
13:04
initial investigation love investigation
13:07
why are these injuries are these the
13:09
, muslim
13:12
is why the
13:15
marla holes in law lives
13:17
in two thousand holes in man
13:21
gave , lives as a thousand money and
13:24
he was
13:26
he doesn't
13:30
allow my mom maybe
13:32
about him his mom dad
13:34
and my mind
13:41
the walking away clean from the trumped up
13:44
federal fraud case
13:45
the on siegelman was reenergized
13:47
and so were his supporters
13:49
whole numbers show that he could be gov bob
13:52
riley again in the two thousand
13:54
and six election that's what he planned
13:56
to do once again the
13:58
united states department of
13:59
had other plans
14:02
siegelman was indicted for a second
14:04
time during the primary season forty two
14:06
thousand and six governor's race the
14:08
resulting in has a feat i'm
14:11
you have accused of accepting a bribe an
14:13
exchange for a seat on the state hospital
14:15
regulatory board
14:16
riggleman kind of the charges i politically motivated
14:19
him as an act of revenge from
14:21
george w bush us department of justice
14:24
the calgary how we suffered too embarrassing
14:27
defeat
14:28
the first was don siegelman zone two thousand
14:31
and four trial where a judge at basically
14:33
ruled that there was no case the
14:35
second unrelated case was richard
14:37
screw see the founder and ceo
14:40
of rehabilitation giant health south
14:43
who had just walked free from the zone fraud
14:45
trial even with dozens of eyewitnesses
14:47
testifying against them now
14:50
federal prosecutors were alleging that richard
14:52
screw she had also paid a half
14:54
million dollar bribed the don siegelman strange
14:57
bedfellows indeed a
14:59
charismatic alabama businessman's
15:01
driving global healthcare company
15:04
revealed to be nothing more than a simple
15:06
multi billion dollar accounting fraud
15:28
and i'm in right now for for
15:30
the last of his arse and in a full of some
15:32
kind
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years ago when , was
16:50
just so young man man
16:55
i would find myself dreaming big
16:57
dreams know what am i gonna do
16:59
when i grow i of what
17:01
really dumb a marketable com
17:03
in terms of my profession my career
17:06
with for will i do i surgery do
17:08
dreams i had the opportunity
17:11
to grow up inside of a large companies
17:13
com the corporate ladder learn
17:15
about all the different functions without a corporation
17:17
things are important in
17:20
terms of building a company and go into
17:22
and company into a sizable companies
17:24
and then of course i continue to dream
17:27
that i had dream dream of don't amount of your company
17:30
richard screw she dropped out of high school
17:33
when he was seventeen years old to provide
17:35
for his pregnant soon to be wise
17:38
it took a job holly cement the
17:40
later attended the pumps at a gas station
17:43
richard even late bricks before he decided
17:45
to get his g d and returned to school
17:49
after transferring from was state community
17:51
college and his hometown of selma
17:53
alabama richards kersey graduated
17:56
from the university of alabama at
17:58
birmingham and nineteen some
17:59
the the for with a degree in respiratory
18:02
therapy
18:03
the started teaching at the school and eventually
18:06
became director the program by
18:08
the time richard left academia another
18:10
child was on the way followed by
18:13
a divorce in
18:15
houston texas richard scrushy found
18:17
a new wife had a new career
18:19
the began working at the life mark corporation
18:22
like mark with a healthcare company with three
18:24
divisions pharmacy acquisitions
18:27
and physical rehabilitation
18:29
in two years which is chrissy
18:31
was overseen all through a vice
18:34
president of the company the
18:36
younger man's ability to lead was
18:38
unmatched
18:39
the commanded rooms like a preacher and
18:41
demanded respect like a grizzled
18:43
football coach
18:45
the only in of mid twenties
18:47
richard screw see i've seen at all
18:49
her life mark a one hundred million
18:52
dollar operation cause
18:54
he wrote quickly through the ranks but had a
18:56
cup of coffee at every level that
18:58
experience developed a rare expertise
19:02
which would soon need a new home
19:05
the nineteen eighty three life mark
19:07
was bought out by american medical international
19:10
the to school she received a significant pay
19:12
out thanks to a stock options
19:15
he already had a plan on what he would do
19:17
with the windfall
19:19
the nineteen eighty five richard
19:21
scrushy and for business partners
19:23
launched an core incorporated and
19:25
little rock arkansas
19:27
new business would offer rehabilitation
19:29
services that a patient would typically
19:32
receive at a hospital but in
19:34
an outpatient setting it
19:36
was was idea
19:38
americans loved a proposal
19:42
that would be cheaper and more convenient there
19:44
would be no parking fees housekeeping
19:46
laundry food services or security
19:49
the patient would not up to spend the night
19:52
that alone would significantly reduce the
19:54
overhead costs that hospitals typically
19:56
pass on the consumers
19:58
and if it were cheaper for the pace
19:59
i might be cheaper for insurance companies
20:02
who were always happy to save a buck
20:05
richards cruces timing was impeccable
20:08
medicare a just approved reimbursement for
20:10
various procedures and couldn't physical
20:13
respiratory an occupational therapy
20:16
health care would be able to survive solely
20:18
on that government teat that
20:21
with on dusters needed to hear
20:23
the court enter capital wrote an core
20:25
incorporated a check for one million dollars
20:28
the company made a profit and it's first
20:31
month of business
20:32
richards or she wanted more
20:34
the change the company's name from am care to health
20:37
south to be more marketable
20:40
he also moved health south headquarters
20:42
closer to home birmingham alabama
20:45
and any raised an additional six million
20:47
dollars in venture capital
20:49
started in a small office with
20:51
a folding table a filing cabinet
20:53
and a dream had become a very
20:56
lucrative publicly traded company and
20:58
a few short years
21:00
everybody involved in the founding of health
21:02
south became rich
21:04
as we returns crucial
21:06
that he deserved
21:07
the dot salesmanship none of
21:10
it would have been possible those
21:12
receiving standing ovations that investor
21:14
presentations for pete sake
21:16
wall street loved
21:18
next thing you know you know where saddam
21:20
contracts with general motors and chrysler
21:23
and the postal service and delta
21:25
airlines and corporations
21:27
all over america and and we're helping
21:29
him reducer healthcare costs
21:31
help stop expanded with lightning speed
21:34
by the early nineties the company had almost
21:36
two thousand and facilities across the
21:39
states has states few overseas
21:42
the annual revenues were more than one hundred and
21:44
eighty million dollars
21:45
richard screws he became the third highest
21:48
p c o in the united states
21:50
the worked at least one hundred million dollars
21:53
by them
21:54
girl
21:55
the wanted more
21:56
robert began rapidly acquiring
21:59
gets competition
21:59
and even faster the
22:02
putting the largest provider about peace
22:04
and surgery and rehabilitate of in
22:06
diagnostic health care services and
22:08
the whole united states the
22:10
company employed more than fifty thousand
22:12
positions at it's peak the
22:15
bridge screw she became birmingham alabama
22:17
favorite son
22:19
the family was multiplying about the staff
22:21
does his company and bank account
22:24
richard and his second wife karen had
22:26
four children together
22:28
richard totaled a thick
22:30
the would agree more with his third wife leslie
22:33
and jones who he married in nineteen
22:35
ninety seven martha stewart had
22:37
attended the screws his wedding and jamaica
22:40
richards cushy like brushing elbows with
22:43
notable names the promote health
22:45
sell t of hard every athlete think
22:47
of
22:48
some legends bo jackson michael
22:50
jordan jackie joyner kersee hershel walker
22:52
and some losers dan marino
22:55
with , payments friends and endless wealth
22:58
wealth no surprise that richard screw she had become
23:00
a legend in his own mind according
23:02
to former employees and retrospect
23:05
it made the company culture of health south absolutely
23:07
toxic
23:08
that at the time everyone had bought
23:11
into the man
23:12
the to screw she was a complete narcissist
23:14
they say an exceptionally competitive
23:18
green are people in meetings shame
23:20
them and intimidate them by
23:22
making a really mean faces
23:24
going all that smoke the make up for what
23:26
he lacked and stature even with the
23:28
lift some as designer shoes richards
23:32
garcia is motivational moments to
23:34
according to help sell for more than one
23:36
meeting richard screw see set up an easel under
23:39
a bunch of stick figures surrounding what richard
23:41
confirmed the be a wagon
23:43
that would like a child's drawing honestly
23:46
regardless the point richer was trying to make
23:48
is it the most productive teams have
23:50
one thing in common
23:52
are all out front pulling the wagon
23:55
they're not coming to the side of the wagon are
23:58
getting a free ride inside of the way
23:59
the though
24:01
everybody without brought
24:03
calling the wagon
24:04
your own weight screw she
24:06
was known to use the phrase pulling
24:09
the wagon to describe keeping health south
24:11
successful it's it's it's goosey was
24:13
so blown away by zone genius to
24:15
the eventually had that wagon drawing commission
24:17
into a life sized metal sculpture
24:20
and front of health south's massive new birmingham
24:22
headquarters
24:24
for demanded that a prince of the wagon drawing
24:26
hanging every company facility the
24:29
original picture of place can the museum
24:31
dedicated the richard school she's career richard
24:34
screw she had built inside of health self
24:36
headquarters the man wasn't
24:38
afraid to celebrate itself seems
24:41
like everything in birmingham was named after
24:44
the won't be recruit him scrushy parkway
24:46
richard em screw see campus the
24:48
richer the i'm screw see conference center
24:51
for richard i'm school she filled curvature
24:53
the unscrew see library to name
24:55
a few
24:57
they were all monuments to richards cruces
24:59
widespread philanthropy and political
25:01
donations there are plenty the share
25:04
the estimated to school she made nearly a billion
25:06
dollars during of career
25:08
eleven homes nearly forty automobiles
25:11
a yacht and more than a dozen airplanes
25:13
the show for it there was no
25:15
better example of richards cruces
25:17
grotesque self indulgence than
25:20
his music career
25:21
the correct
25:22
richard lifelong dream
25:25
and become a country music superstar
25:28
the money make drink
25:30
richard scrushy formed in front
25:32
of the bad that included other how
25:34
south executive called dallas
25:36
county line
25:38
they had hit such as ah ha
25:41
ha you don't and who could forget
25:44
you do you do good going
25:46
to seal the looting
25:51
chris you have known to play entire
25:53
albums of his own country music on repeat
25:56
for anyone unfortunate enough to
25:58
be stuck in the health
25:59
the airplane with them
26:01
it didn't feel it every ounce of his soul
26:03
when to those songs dallas
26:06
county line never caught on in nashville
26:08
or than birmingham
26:10
the going after school she bought a nearby club
26:12
so the ban could regularly perform a
26:15
billionaire singing the song of the
26:17
working man pumping
26:19
were just difficult to take seriously
26:22
richard screws he was serious about getting into
26:24
the music business one way or another
26:27
the late nineties he developed a new approach
26:29
there would be a guaranteed slam dunk
26:32
they just needed to go for it
26:57
that girl power trio third
26:59
phase
27:00
remember them
27:02
yeah me neither but apparently
27:04
richard screw she channeled loop perlman and
27:06
spent at least a million dollars promoting
27:09
this girl group we them around
27:11
on health south's jets he bottom
27:13
breast implants
27:14
the dog to the bp of sony
27:17
records for recording contract
27:19
hard to achieve not
27:21
much the to hide their success
27:24
thirties opened for britney spears on
27:26
a short tour they released one
27:28
album and the disappeared with the sad
27:31
the most amusing part about richard screw says
27:33
musical the answers as that he displays
27:36
a company's accountants when he converted
27:38
m entire for the health south officers
27:40
and to a recording studio the
27:42
was a perfect encapsulation of what
27:44
was happening inside the company of the time by
27:47
the time richard was far more interested
27:49
in other projects the managing health
27:51
south's day to day
27:53
the business was slipping because of it
27:55
the ninety ninety six the first
27:57
time ever elsa have suffered
27:59
bad financial quarter
28:01
their actual numbers were nowhere near
28:03
wall street's expectations the
28:06
result the spot price would undoubtedly
28:08
take a hit that blasting
28:11
richard school she wanted to happen the
28:13
report bad numbers admit failure
28:16
not on his watch
28:18
the flag the unremarkable
28:20
quarter was just a temporary set up
28:22
he assured staff
28:24
the everything would be back to normal by the next
28:26
reporting date there was no reason the
28:28
reported and scare wall street
28:30
former health south executives claim that
28:32
richard school she instructed them to quote
28:35
a number
28:37
the company had always practice fairly aggressive
28:40
accounting but this was next level
28:43
the for straight up fraud gruesome
28:45
team followed their leader anyway
28:47
bill owens health south controller
28:50
and she the counted proposed they
28:52
falsify accounting entries to inflate
28:54
their quarterly earnings
28:56
the counter would post thousands and thousands
28:58
of small increase to the contractual
29:01
adjustment account to which auditors
29:03
would pay no mind that account
29:05
estimates the diverse between the amount failed
29:07
to the patience and the amount insurance
29:09
or pay it's constantly adjusted
29:12
and difficult to verify a prime
29:14
candidate for a financial fuckers
29:17
oh and also suggested they disguise
29:19
operating expenses as fixed
29:21
assets and appreciate the cost
29:23
over time instead of taking the hit
29:25
all at once the court
29:27
t depreciation expense would eventually catch
29:30
up and demolished future earnings but
29:33
that would probably be someone else was problem
29:35
in , meantime it was a way to fill the
29:37
hole executive
29:40
com the name the practice
29:42
financial officer aaron being
29:44
signed off on it that quarter
29:46
hell self reported phony profits for
29:48
the first time
29:50
when they taste the same dilemma the following
29:52
quarter
29:53
former health south executives claim c
29:55
o richard screw she instructed
29:57
them to fix the numbers again
29:59
then again and again
30:02
one hundred twenty thousand fraudulent
30:04
journal entries every quarter
30:08
clearly things were not getting better as
30:10
quickly as richard had promised
30:12
the bought numbers were getting larger and larger
30:15
every month even after health south
30:17
executives tried to gently persuade richard
30:19
to tell the truth
30:20
richard screw she refused to report
30:22
a loss
30:23
the price was higher than ever
30:25
the wasn't going to happen
30:27
that richards goosey would demand the hell south
30:29
family keep pulling their wagon until
30:32
the wheels go off he
30:34
remember very hard planes us
30:36
and unless part of business farmers sorta how
30:38
people got fooled into is
30:41
is that he seems as if preaching
30:43
and pulsing and motivating to be
30:45
able to be that to face to
30:48
these indicates
30:50
, senior single
30:53
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30:55
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injuries have i was part of the games
32:14
and to give you a level of performance takes
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a lot of hard work discipline and
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competition and the glory scenario
32:33
, we understand are
32:35
still sundance
32:39
help operated as a complete fraud
32:41
ever since richard school she instructed his
32:43
team the fix the number
32:45
every line on the ballot she was alive every
32:48
annual report was report was work of
32:50
fiction moreover the
32:52
skill of the fraud was growing with
32:54
each passing day and
32:57
nineteen ninety six a company reported
32:59
earnings of two hundred twenty one million dollars
33:02
while the actual number was closer to
33:04
one hundred thirty two million the
33:06
, year health south reported earning
33:09
three hundred and thirty one million dollars
33:11
when they've actually lost sixty five million
33:14
and and nineteen ninety eight the
33:16
company reported forty seven million dollars
33:18
on the true earnings number was negative five
33:20
hundred fifty six million dollars the
33:23
how stock price restarts record
33:25
high that same year cover
33:28
their tracks health south implemented
33:31
an email system the deleted old
33:33
emails every sixty days and
33:35
they'd send fake documentation to the auditing
33:38
whenever a question was asked
33:40
it was a simple but labor intensive
33:42
fraud scheme go for
33:45
it at work which ,
33:47
simply would not allow
33:50
through numbers to come out he would become
33:52
extremely angry extremely the
33:54
senses me was so busy with
33:57
his narcissistic ways to
33:59
come
33:59
richards
34:03
course he was handling be pressure of operating
34:06
a massive financial fraud scheme in the
34:08
most richard scrushy way possible he
34:10
became extremely paranoid and reclusive
34:13
he , bodyguards she bought a guard
34:15
dog install surveillance equipment
34:18
and every office office
34:20
also started carrying a gun in
34:22
his in the security blanket
34:24
landed him in trouble when he accidentally
34:27
brought it to brought airport security
34:29
that he was on his way to washington dc
34:31
to see the president which was
34:34
true but poorly time also
34:37
poorly timed was the rise of the internet
34:40
from the height of screw she's paranoia
34:43
he , to hell self employed to track
34:45
down any one bad mouthing him or health
34:47
south and chat rooms and on message
34:49
boards so that he could sue them for libel
34:52
at one point screws even thread the printed
34:54
on newspaper after newspaper less than flattering
34:57
article about the ceo appeared
34:59
in the birmingham news the
35:02
record i stock price made richards chrysotile
35:04
a little better the laying
35:06
off a bunch of employees the following week
35:09
while at the same time purchasing a six million
35:11
dollar helicopter with the little things
35:13
in life you know but ,
35:17
richards cushy new house up with the house
35:19
of cards waiting the tip tip
35:22
make matters worse richard was already
35:24
in legal trouble for buying computers
35:26
were health south from his shell corporation owned
35:28
by his by the school she's
35:30
had sold equipment to the government out a agreed
35:32
to sli inflated prices also
35:35
paid almost eight million dollars in two thousand
35:37
and two to settle two case later
35:40
that year richard scrushy discover that his personal
35:42
account it was personal from him we'll
35:44
make massey jr was using scorsese
35:47
money to bankroll an affair with a married
35:49
woman who worked for of see daisies
35:51
the upscale pajama company owned by screws
35:54
his third wife when richard
35:56
found out he was furious he made repeated
35:58
phone calls for the woman only
36:01
on the now and he did he threatened his
36:03
account and with who knows what form embezzling
36:05
of cash the , never made it
36:07
to court court massey imposed
36:10
as on centers but they self inflicted
36:12
shotgun blasts through the roof of his of
36:15
lose one friend lose another
36:18
two thousand and two was the year that richards cushy
36:20
med jason harvey the former
36:22
child actor who played fred savage his
36:24
older brother weighing on older wonder years
36:28
richard i've always loved that show so
36:30
he offered jason her via job senior
36:33
vice president of marketing and communications
36:36
that health south the job the jason
36:38
herbie was not qualified to do harvey's
36:42
, can be seen in the advice
36:44
he reportedly gave richard scrushy about
36:47
his and best presentations they weren't
36:49
being received with the same enthusiasm
36:51
as they have back when health south was a startup
36:54
startup presentations needed more sex appeal
36:56
harvey told richard and richard listened
36:59
as like the powerpoint presentation featured
37:01
photos of scantily clad women act
37:04
by music from third phase
37:06
the was met with silence you
37:09
could hear one investor ask another quote
37:11
the
37:14
people were losing interest and health
37:16
health and health was losing physicians
37:18
and patients i'm an alarming rate the
37:21
, also have aging facilities with
37:23
no real cash on hand effects from from
37:26
empire was empire health
37:28
south executives had seen it all before
37:31
on the evening news enron worldcom
37:34
all the boxes of evidence being logged
37:36
out of skyscrapers
37:38
men and designer suits being led away
37:40
in handcuffs
37:41
that was the remember liberal future the
37:44
federal government was doing everything it could
37:46
to assure it in , wake of those
37:48
financial scandals enron and worldcom
37:51
congress passed the sarbanes oxley act
37:54
which requires ceos and cfls
37:56
to certify the integrity of her company's
37:58
financial results the legislation
38:01
also increase the penalties for individuals
38:03
and companies found to be lying
38:07
there are two things together look doomed entirely
38:09
for everyone involved in the hell thought fraud
38:12
there was a glimmer of hope
38:14
medicare announced a change in it's reimbursement
38:17
policies that would cost the company about
38:19
twenty five million dollars in annual
38:21
earnings
38:22
i know that sounds bad for business and usually
38:25
it would be by
38:26
they'll have within a unique position
38:29
mark of revenue was actually an opportunity
38:32
to conceal the fraud maybe
38:34
, was a way out how
38:37
self could now reports more accurate
38:39
numbers and blame the medicare policy change
38:41
for the poor results are daschle overstating
38:44
it's effect again inside
38:47
again company estimated that would lose twenty
38:49
five million dollars five million as a result
38:51
of the change richards kersey told
38:53
investors that healthsouth would lose
38:55
one hundred and seventy five million dollars
38:58
a year washington ,
39:00
like that news news of how
39:02
soft plans forty four percent
39:04
in one day in august two thousand two thousand
39:07
, investors had the rug pulled out from under
39:09
them
39:09
richard [unk] screws she was not one
39:12
of them it sold his shares his shares months
39:14
earlier four fifty four million dollars
39:17
originally what kaka securities
39:20
and exchange commission attention
39:22
the opened an investigation and the screws
39:24
his house
39:25
the even removed it's how cel ceo
39:28
of returned wanna smoke had cleared
39:30
shareholders that were left holding the bag
39:33
sued richard scrushy for the timing
39:35
of the stock occurred
39:37
, would find out that was the least
39:39
of his worry worry was told
39:41
to meet our the f b i on
39:43
and several other federal officials at
39:45
a sweet on that the winfrey hotel on a
39:47
given night a certain a and
39:50
i was told park on the opposite side of the gallery
39:52
of mall and taking a
39:54
serpentine route to the gallery
39:57
in event that i was being followed try to shaking
39:59
the
40:01
western smith
40:03
he taken over as how self see a foe
40:05
in two thousand and one of the bill owens
40:08
was promoted to chief operating officer
40:10
the one that taken over for air and been who
40:13
left the company in two thousand when
40:16
contacted the f b i and inform
40:18
them that he had a story to tell
40:20
on march twelve two thousand and three had
40:22
room for twelve of the winfrey hotel
40:24
in birmingham
40:26
how how cfl detailed the massive
40:28
fraud the was occurring inside the company the
40:31
told them about the family of executives
40:33
are now they were instructed to fill the hole
40:35
and fix the numbers
40:37
the be i had no idea
40:39
the or perspective insider trading but
40:42
this was unexpected
40:43
over the next week the case of became much
40:46
clearer
40:47
the former and current how felt insider
40:49
hear their stories cleaning
40:52
, sci and find it helpful numbers
40:55
but he insists the fraud was
40:57
ordered by richard scrushy been
40:59
describes working for sprucing saying he
41:02
had misgivings from the first time
41:04
he met him even so been
41:06
right i went to work for him because
41:08
he had a brilliant business mine
41:11
as it turns out it was his only
41:13
redeeming quality as a human
41:15
being being continues to
41:17
say screw see was equally diabolical
41:20
palace and cruel that he was
41:22
likely a sociopath health
41:25
self corporate offices were rated on
41:27
march eighteenth two thousand march eighteenth
41:29
the team up can hardaway filing cabinets
41:31
and hard drive to flag on the
41:33
evening news except
41:35
this time the story was dropped from the new cycle
41:38
at record speed
41:39
two days after the raid
41:41
the united states dropped the first of all
41:43
would be almost thirty thousand bombs on
41:45
iraq
41:46
mission accomplished
41:49
op board of directors removed richard
41:51
screw see from his c o position as
41:53
the extent of the fraud was revealed
41:56
are making ninety six to march two thousand
41:58
and three
41:59
the company
41:59
the literally overstated it's earnings by two
42:02
point seven billion dollars
42:04
the got her while of control towards the end up
42:06
hell south was paying more in federal income
42:08
taxes on it's funny process that
42:11
there was actually making and true net income
42:13
dagger if
42:16
you see filed a lawsuit against health south body
42:18
criminal investigation continued the
42:21
stock price which had once traded for thirty
42:23
dollars a share shriveled that as
42:25
a sense before was halted she
42:29
uses few months of uncertainty to
42:31
deny everything he said he was just
42:33
as shocked as everyone else that the government's allegations
42:36
he said he had no knowledge of the frog
42:39
he oh he had to interest a team
42:42
you see that mean perpetrated
42:44
the fraud
42:45
they were the low life not help the
42:48
court that would be left for a jury
42:51
to decide
42:53
the november two thousand and three a federal
42:55
grand jury finally indicted richard
42:57
scrushy on eighty five counts
42:59
related to the two point seven billion dollar
43:02
health south front
43:03
the would be first ceo to be charged
43:06
with violating bizarre been dot
43:10
the will not be black
43:11
in alabama today federal
43:13
prosecutors have accused the man who ran the country's
43:16
largest provider of outpatient
43:18
surgery and rehabilitation services
43:21
with fraud on a colossal
43:23
scale richard screw see who's
43:25
sounded health south is accused
43:28
of inflating it's earnings by two point seven
43:30
billion dollars and illegally
43:32
stealing more than a quarter of a billion dollars
43:34
for himself
43:38
facebook is building tools to enhance
43:40
safety and security over forty
43:42
million people are using facebook privacy
43:44
check up each month that's nearly sixty
43:46
times the population of washington
43:48
the be learn more about
43:50
work ahead at facebook dot
43:52
forward slash action
43:55
prosecutors
43:57
embarrassment of riches they don't order
43:59
we have this much evidence as
44:02
the care coverage in this case i don't think there's
44:04
any chance that they'll be able to go after
44:06
world com or enron senior executives
44:10
by the time richards cruces trial began
44:12
in birmingham and january two thousand and
44:14
five fifteen former health
44:16
south executives had already pleaded
44:18
guilty
44:19
including former c athos bill owens
44:22
air and been and western smith
44:25
all of the top executives pointed to richard
44:27
scrushy as the originator of
44:29
the fraud they were scheduled to testify
44:31
at trial
44:33
the very least assumed obvious that the founder
44:35
and ceo of health south was
44:37
aware that something unscrupulous have
44:39
been going on the
44:42
bill which is chrissy denied any wrongdoing
44:45
the pleaded not guilty of the to a remaining
44:47
counts of conspiracy securities
44:49
fraud wire fraud mail fraud
44:51
money laundering and more squishy
44:54
faced the potential life sentence of convicted
44:57
lawyers were confident he would walk
45:01
out have have around when you a bad mouthing
45:03
on a would i not have waited all these
45:05
my brain charges
45:07
defense starter the medial you
45:09
through the media while out on
45:12
ten million dollars bail granted
45:14
an interview to cbs a sixty
45:16
minutes
45:17
where he previewed has stance by blaming
45:19
and discrediting his underlings oh
45:22
and air been west of smith
45:25
all wire
45:26
convicted felons even
45:28
they put the numbers for their own financial interest
45:30
in cook extraordinary measures die
45:32
the scheme
45:34
cinnamon as stock options to you
45:36
know
45:37
the now they were throwing their boss under the bus
45:39
to lighten our own sentences screw
45:42
she was innocent according to richard
45:44
scrushy had taken objective
45:46
reveal the evidence
45:48
the show that richards crew she was not involved
45:50
in any of these alleged glass and
45:53
they will say that i was not part
45:55
of their skin
45:56
not one single memo not
45:59
one single
45:59
mm not one single note
46:02
not one single email but
46:04
richards cruces fingerprints on it went
46:07
to school she's lawyers proclaimed and opening
46:09
arguments
46:10
there was nothing lincoln richards kersey
46:12
to the fraud scheme besides the testimony
46:15
of his former employees
46:17
the bill would attack the character of every witness
46:19
on the stand to prove their richard scrushy
46:22
to have been duped
46:25
the performer cf aware beams testimony
46:27
directly implicated richards kersey
46:30
and the fraud scheme the defense
46:32
raised questions about the witnesses alleged
46:34
drinking problem which been flatly
46:36
denied
46:37
then they accused the witness of cheating
46:40
on his wife with other women mr
46:42
been confirmed to be true
46:45
what else does one need to know about a person's
46:47
moral character the defense posts
46:50
no further questions your honor
46:53
the to screw she was taking be moral high
46:55
ground there was no reason the jury some
46:57
believe these liars these thieves
46:59
these torturers the testimony
47:01
of these rap who are only interested
47:04
in saving themselves scrushy
47:06
lawyer had a poster board with an image of
47:08
a rat eating a piece of cheese and everything the
47:11
again the defense reminded the jury
47:14
there were no paper trail
47:16
the ball the executives who have pleaded guilty
47:19
only one of the ten who had already been sentenced
47:21
receive jail time
47:22
everyone else for the given the home detention in exchange
47:25
for their thorough cooperation
47:28
why one of these men lie about richard
47:30
screw says involvement that already
47:32
lied about everything else while
47:34
the prosecution and defense battle the downcourt
47:38
british , he was fighting for public sympathy
47:40
using a variety of strategies which
47:43
another website built to promote his innocence
47:46
the purchased a television station and
47:48
put a son in law in charge who broadcast
47:50
daily commentary on the trial but
47:53
you're also started attending church on no
47:55
more than regular basis he
47:57
joined a black church in one a birmingham the blue
47:59
the neighborhood way began preaching
48:02
the game enormous donations to many other
48:04
black churches in the city that
48:07
wasn't enough to convince everybody how holy
48:09
he was
48:10
screw see also launched a daily religious
48:13
talk show called viewpoint the
48:15
hosted with his wife leslie
48:17
the show to invite hundred the black
48:19
creatures to appear as guests and
48:21
read bible verses with us
48:23
today we have we have new friend
48:25
a pastor andrew macarthur were
48:28
excited to have him whether she's with a victory church
48:30
and tanzania's could have you back when
48:32
you look like a lesson today now
48:34
you get your catcher african a town
48:36
that i'm really like that outfit this
48:39
one shot when i come afrigadget
48:41
much as comfortable as us
48:43
richards curses reset turn to religion
48:46
and embrace of black people raise
48:48
some eyebrows from people were known the man
48:50
for a long time
48:52
according to former employees of health south
48:54
there was an unwritten policy never
48:57
to hire a black person they didn't
48:59
for the first decade of a company
49:02
the allegedly squishy wants to bill owens
49:04
and passing quote
49:05
we're not going to hire any here
49:08
lava didn't go to church very often
49:10
they say are you liking the light
49:12
of the most accurate news about my situation
49:15
prefer the my website www dot
49:17
literally unscrew she does house so
49:19
why the change of heart of change sudden
49:22
richard screw see repenting for passing
49:25
the could have something to do with the fact that the jury
49:28
at his trial consist of the five
49:30
whites and seven african american that
49:33
why you showed up the core with an entourage
49:35
of black preachers every day
49:37
richards cursing trying to told the
49:39
jury
49:40
why should we start living simply
49:43
because he's been accused of something wasn't
49:45
what would you recommend
49:46
you want me to go sit my run the
49:49
no i'm not gonna do that if we can work
49:52
to live people have an end to positive signs
49:55
while i'm sitting here waiting
49:59
that are denied cbs evening news justice
50:02
antonin scalia decides not to remove
50:04
himself from a case involving his friend
50:06
the vice president's
50:08
on may nineteenth two thousand
50:10
and five after an exhausting
50:12
five month trial
50:14
the jury began deciding richards curses
50:16
fate on the thirty six charges
50:18
there remains the deliberations
50:21
took over a month because one juror
50:23
was dismissed and replaced for health reasons
50:26
finally on june twenty ninth two thousand
50:28
and five
50:29
the decision was made in ,
50:31
alabama what many saw as a surprising
50:34
verdict in the case against former health
50:36
south city or richard scrushy after
50:38
twenty one days of deliberation jurors
50:41
found screw she's not guilty on all
50:43
thirty six counts of conspiracy and
50:45
securities fraud prosecutors
50:47
brought the charges after discovering a two point
50:49
seven billion dollar accounting fraud
50:51
and health south the nation's largest
50:53
outpatient surgery company and when
50:56
we return john paul's fast
50:58
track to sainthood so many followers claiming
51:00
he's performed miracles since his death
51:03
will take will look
51:05
quarter was prevented it was brought up the company
51:08
but there was not enough evidence to prove that richard
51:10
screws he was involved one of the
51:12
jurors told the wall street journal while
51:14
getting a haircut at a birmingham barbershop
51:18
that a juror a pretty year old black
51:20
woman
51:20
when her decision to the journal as well
51:23
the wording that they used i
51:25
could have met several different things he said
51:28
and added the should have gotten fingerprints
51:30
on those records
51:32
outside the courthouse
51:34
richard screw she was celebrating see
51:37
, told us that we love each other we have got
51:41
i have compassion for could you don't
51:43
know who's next who's gonna be attacked
51:45
next
51:46
richard school she spent more than twenty five
51:48
million dollars on his defense also
51:51
concerns reimbursed and for most of it
51:54
what of victory
51:55
the only was richard avoiding prison time
51:58
but he would also not after forfeit
51:59
the well for property for now at
52:02
least he was still facing a massive
52:04
civil trial and shareholder lawsuits
52:08
as for scorsese former health south family
52:10
members and wagon pullers
52:12
they weren't so lucky
52:13
the bro them serve short still from prison
52:16
bill owens received a longer sentence
52:18
of five years when he got
52:20
out he was destitute in the fourth
52:23
you can muddle guilty pleas the health
52:25
south frog as an embarrassing defeat for the
52:28
united states department of justice
52:30
press on the heels of former alabama
52:32
governor don siegelman case that
52:34
the judge all but throughout
52:36
we certainly hope that they
52:38
would believe those witnesses he pled guilty
52:40
to their crimes and implicated
52:43
mr screw see and put him as a i
52:45
coconspirators
52:47
how humiliating
52:49
that not all hope is lost
52:52
the former aide of see comments name to
52:54
make bailey had recently come forward
52:56
with information they implicated both richard
52:58
screw sheep and don siegelman and
53:00
a crime how convenient
53:04
allegedly richards kersey have given five
53:06
hundred thousand dollars to don siegelman nineteen
53:08
ninety nine education lottery campaign
53:11
in exchange for a seat on alabama certificate
53:13
of need board aboard that regulates
53:16
hospital construction
53:17
that really told federal authorities that he
53:19
with as a private meeting in the governor's office
53:22
but when siegel minutes crucial the
53:24
heard their discussion of the quid pro quo
53:27
and he saw a check change hands
53:30
both don siegelman and richards goosey
53:32
denied the accusations yes
53:34
they admitted scrushy have donated money
53:36
to the effort but mom exchange
53:38
for anything because he was a
53:40
republican who showered his money on both
53:42
sides of every campaign and more
53:44
importantly he already had a seat
53:46
on the board and question for three proceeding
53:49
governorships he didn't need the
53:51
bride siegelman the get it and
53:53
on october twenty since two thousand two thousand
53:55
on the strength of nick bally's testimony of
53:58
don siegelman and richard screw
53:59
the were indicted on bribery and mail
54:02
fraud charges
54:03
the trial began in may two thousand six
54:06
bailey repeated understand that he saw
54:08
the bribe happen the , argued
54:10
that it was impossible the dates on
54:13
the check in the meeting didn't even line up
54:15
and since when was donating for donating seat on seat
54:17
board considered bribery
54:19
literally every single politician
54:21
does it and , dozen for
54:23
george w bush appointed one hundred
54:25
and forty six donors to positions
54:28
and his administration how's
54:30
that different from what siegelman and scrushy
54:32
were accused of doing
54:34
the widening the defense proclaimed
54:36
don siegelman didn't even personally benefit
54:39
from the transaction this case
54:41
was unprecedented and without merit
54:44
siegelman council are you
54:47
it's excruciating legal team was led by
54:49
fred gray who had once represented
54:51
martin luther king jr and rosa parks
54:54
curses use of race on has bribery
54:56
trial was even more egregious than the last
54:59
he played up a selma root for
55:02
, closing arguments gross his lawyer set up
55:04
a poster of the a male case i have a dream
55:06
speech has spread gray and for
55:08
jurors to return a not guilty verdict
55:11
to quote make dr king's
55:13
dream come true
55:15
the time
55:17
on june twenty ninth two thousand six
55:19
adderall juri samples don siegelman
55:22
and richard scrushy guilty of
55:24
seven of thirty three felony counts
55:27
ever since two thousand seventy thousand
55:30
seventy and six years in prison respectively
55:33
both men were immediately taken into custody
55:36
and not allowed to report at a later
55:38
date
55:39
former alabama governor don siegelman will
55:41
be in court tomorrow as well in montgomery
55:43
the judge overseeing his appeal has ordered
55:46
him to appear for his request for
55:48
release while his appeal is
55:50
ongoing the sixty eight year old is
55:52
currently serving as seventy eight month sentence
55:54
for bribery conspiracy and obstruction
55:57
of justice charges at a federal facility
55:59
and
55:59
louisiana siegelman appeal
56:02
hearing in atlanta
56:12
less than a year later don siegelman
56:14
was released from federal prison while
56:16
he appealed his conviction the
56:18
former governor the ledger that his prosecution
56:21
was politically motivated
56:23
again but all traced back
56:25
to karl rove as
56:34
, as long as
56:41
well as follows
56:46
that amount ninety nine a bush
56:48
appointed federal prosecutor came to
56:50
learn to marry began investigating
56:53
don siegelman the would soon be campaigning
56:55
to be reelected governor of alabama
56:58
we're a canary was married to a man named bill
57:01
canary
57:02
the open areas karl rove political
57:04
consulting partner and he was also
57:06
the campaign manager of siegelman opponent
57:08
bob riley
57:10
that's right
57:11
the us prosecutor was investigating
57:13
her husband's political rival riggleman
57:16
president labour just loving bird anything
57:18
to smear on with when
57:20
the canary connection became public eight months
57:22
into the investigation laura canary
57:25
recused herself the up she
57:27
didn't really nope
57:29
later released by a former department of justice
57:32
staffer rebuilder laura can marry
57:34
was still very much involved in the siegelman
57:36
investigation until his arrest
57:38
in two thousand and five stay as
57:40
i can put me in prison for nine months
57:42
for appointing registration thing the
57:45
fourth gov to reappoint registration
57:47
they oughta be able to execute written
57:49
carry for what he did in texas
57:52
another whistleblower came forward with information
57:54
backing up these claims of prosecutorial
57:57
misconduct
57:58
the unit your simpson and
57:59
them a lawyer and republican operative
58:02
the congressional investigators under oath
58:05
that she was on a conference call or she heard
58:07
bill can marry tell and campaign workers not
58:10
to worry about don siegelman
58:11
that is quote girl
58:14
us prosecutors laura canary
58:16
in alice martin would take care of
58:18
them they finally did
58:20
the richard scrushy
58:23
oh and nick bailey why
58:25
would nick bailey doors old boss under the
58:27
bus like that anyway
58:29
he was a crook to of course
58:32
the bailey himself had accepted bribes while
58:34
working for don siegelman more than
58:36
one hundred thousand dollars worth
58:38
the had gotten caught
58:40
the really brokered a deal with prosecutors to
58:43
testify against don siegelman the
58:45
later admitted that us prosecutors coached
58:47
him on what to say the up to seventy
58:50
interrogations of bailey took place without
58:52
required pre trial disclosure to the defense
58:55
from the the meetings were never divulged
58:58
the rock a rumor the nick bailey was repeating
59:00
the government's words to prevent publicizing
59:03
in the lead sexual relationship between
59:05
nick and dawn them paid
59:07
a prominent alabama businessman told
59:10
harper's magazine that he had a conversation
59:12
with nick bailey and share the details
59:14
quote the cost of told me
59:16
that one of the agents working be siegelman scrushy
59:18
prosecution the on whether you
59:20
have ever taken illegal drugs with gov siegelman
59:23
or have a sexual relationship with them
59:26
the comments have a dramatic effect on nick
59:29
and and my observation significantly
59:32
to the pressure he fell to go along with whatever
59:34
the prosecutors one is on to say that
59:37
doesn't end there
59:38
the judge and siegelman case had
59:40
a hand in this to see ,
59:42
was forced out of office because he was a violent
59:45
saudi beta is why is he committed
59:47
does a violent crimes
59:50
was found
59:54
guilty of perjury lying to
59:56
police
59:58
all of that is true but the
1:02:00
a billion dollar judgment and a civil
1:02:02
suit brought against come by health south and dusters
1:02:05
the with enough them they could sing the blues
1:02:09
traveler , such
1:02:12
a way suppose when will last
1:02:15
i am leading man is not be
1:02:17
and there
1:02:19
the nine year old richard scrushy was
1:02:21
released from federal custody on
1:02:23
july twenty six twenty twelve after
1:02:25
serving nearly six years
1:02:28
seventy year old don siegelman was
1:02:30
released five years later on feb
1:02:32
eight twenty seventeen
1:02:34
oh rove denies having any
1:02:36
involvement in the two mins prosecution
1:02:49
swindled is written research produced
1:02:51
in hosted by me a concerned citizen
1:02:54
with original music by trevor howard aka
1:02:56
the former aka the
1:02:58
honky tonk conquer for
1:03:01
more information about swindled you can visit swindled
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