|
Witness |
Title/Role |
Day |
Brief synopsis |
| Janus Ellenberg |
investor |
Day 1 |
Lost money on HealthSouth stock. Said she listened to the company's
conference calls for investors, that Scrushy participated in. |
| Ernest Rainer |
investor |
Day 1 |
This investor said he had seen Scrushy on CNBC, talking about how
well HealthSouth was doing. |
| Aaron Beam, Jr. |
First CFO |
Day 1-3 |
He said that Scrushy told him and Owens to "fix" the numbers when he
had told Scrushy that there was nothing they could do with the numbers
to make them meet market expectations. Direct examination: Cross:
Parkman |
| Harvey Ray Kelly III |
forensic accountant |
Day 3-5 |
Originally hired by the HealthSouth board to investigate the extent
of the fraud on the books. He talked about how they discovered 2.7
billion dollars of fictitious money on the books. He detailed how the
fraud was done, and what the characteristics of it were. He said there
was nothing in his investigation that would link the fraud to Scrushy.
Direct examination: Conry Cross: Leach |
| Homer Colman |
FBI agent |
Day 5 |
He prepared the body recorders that William Owens would wear to
record conversations with Scrushy. One of the recorders failed to record
which was of interest to the defense. Direct examination: Cross: Parkman |
| Taura Cobb |
FBI agent |
Day 6 |
She received the tapes and recorder into evidence. Some mistakes
were made on the logging of the evidence. |
| Oralyn Byrd |
FBI agent |
Day 6 & 12 |
She received and processed tapes and recorder into evidence.
Direct examination: Cross: None |
| Gerald Kelly |
FBI agent |
Day 6 |
Lead investigator in the case. He was questioned about the wiring of
Owens, to record conversations with Scrushy. |
| William Owens |
CFO (was also Controller, CEO and COO at other times) |
Day 6-16 |
One of the trial's main attractions. Much of the testimony centered
around a wire Owens wore to gather information on Scrushy. Opposing
theories collided with Owens claiming Scrushy was the mastermind and the
defense pointing back at Owens. Direct: Wiedis Cross: Parkman |
| David Snyder |
FBI -Forensic audio examiner |
Day 12 |
Testified about the enhancement of the CD's made from the wire Owens
wore to HealthSouth |
| Leif Murphy |
Group VP & Treasurer |
Day 16-17 |
Asked to do an analysis, and given some of the first-run
documentation, Murphy figured out the fraud on his own. He left the
company shortly after Scrushy blew up at him, when he presented the
information, detailing the fictitious income.
Direct examination: Cross: Parkman |
| Diana Henze |
VP of Finance |
Day 18 |
After seeing unexplained changes in reports, she made a complaint to
the HealthSouth compliance office. Direct examination: Cross: Leach |
| Kelly Cullison |
Director of Compliance |
Day 18 |
Took Diana Henze's complaint, and forwarded it to the Compliance
Officer, Tony Tanner. It was closed as unsubstantiated. Direct
examination: Cross: Parkman |
| Donald Pritchard |
Investor |
Day 18 |
Lost money on HealthSouth stock (received info from HealthSouth in
the mail) |
| Mae Moss |
Investor |
Day 18 |
Lost money in HealthSouth stock (received info from HealthSouth in
the mail) |
| Joseph Walker |
Fixed Income Analyst |
Day 18 |
Manages state pension fund. Invested in HealthSouth bonds that lost
money. |
| Teresa Sanders |
Internal Auditor |
Day 19 |
They audited mostly facilities and did not have access to the
corporate books.
Direct examination: Cross: Parkman |
| Greg Thornton |
Investor |
Day 19 |
Owned HealthSouth stock, and lost some money. |
| Douglas Haskew |
Investor |
Day 19 |
Owned HealthSouth stock and still owns most of it |
| Caroline King |
Investor |
Day 19 |
Retired School teacher. Lost money on HealthSouth stock |
| Marca Pearson |
VP of Benefits |
Day 19 |
Among duties was administering employee's stock purchase plan |
| Ken Livesay |
Asst. Controller & CIO |
Day 19-22 |
He was the assistant controller and was present at most of the
meetings where the fraud was discussed. He had no direct connection to
Scrushy but had a peripheral hand in several key events, including being
in a conversation with Scrushy and Owens on the day Owens was wearing a
wired. He transferred to IT in 1999. |
| LeAnne Tyler |
Mike Martin's Assistant |
Day 22 |
She was present, outside the Martin's office, on the day Scrushy
yelled at Leif Murphy following the presentation he gave to Scrushy. |
| Mike Martin |
CFO (1997-2000) |
Day 22-27 |
He was the CFO after Aaron Beam and before Bill Owens. Martin was at
the meeting where Leif Murphy presented his book that described the
exact nature of the fraud, to Scrushy. Much of his testimony
centered on his efforts to convince Richard Scrushy to do things or not
to do things, in order to bring the numbers back in line without risking
having the scheme exposed. |
| Albert Rice IV |
Healthcare stock analyst |
Day 27-28 |
Discussed the problems at HealthSouth from an
outside-the-company point of view. |
| Malcolm "Tadd" McVay |
Treasurer and CFO (2002) |
Day 28-29 |
The last CFO in the Scrushy-era (except for the few months when
Owens returned to the position, in 2003). Although his tenure was
shorter than most of the others, and he was not involved in as many of
the central events, his testimony was rather explosive. He talked about
frequently discussing the situation with Scrushy. |
| Will Hicks |
VP of Investments |
Day 29 |
He is a co-conspirator who did not have much connection to the
others. His testimony only added a few points to the government case,
like that Scrushy was aware of the cash flow problem. |
| Michael McClaine |
HealthSouth Pilot |
Day 29 |
He was called to confirm flight records that showed that he picked
Scrushy up from Gulf Shores, Alabama, and brought him to Birmingham, on
August 5, 2002. |
| Theresa Pugh |
Verizon Manager of records |
Day 29 |
She reviewed phone records that showed Scrushy's cell phone was used
near Pensacola, early in the morning of August 2, 2002; and was later
used in the Birmingham area, in the afternoon. |
| Weston Smith |
CFO |
Day 30-33 |
He was the last CFO of HealthSouth during the Scrushy era. He is
married to unindicted co-conspirator, Susan Smith, and he is kind of the
whistleblower in the case, being the first HealthSouth officer to come
into the Feds.
Direct: Cross: Parkman |
| Mary Esclavon |
Assistant to Scrushy |
Day 33 |
Talked about Scrushy's travel, including where he was on some
important days. |
| Frank Morgan |
Stock Analyst |
Day 34 |
Showed how the outside was responding to what was going on with
HealthSouth.
Direct: Martin Cross: Adams |
| Neil Seiden |
SEC Investigator |
Day 34-35 |
Revealed information the defense used to show the SEC and DOJ were
improperly cooperating, which led to the perjury charges being
dismissed. |
| William Bavis |
Expert Witness- cash flow |
Day 35-41 |
Testified about cash flow, and specifically about the money
laundering charges. |
|
Defense's Case |
| Gerry Kelly |
Lead FBI Investigator |
Day 42-45
defense 1-4 |
Went over investigation techniques, 302
notes and various aspects of the prosecution's case |
| Paul Ginsberg |
Audio Expert |
Day 45
defense 4 |
Rendered opinion that the audio CDs from
Bill Owens wire were not reliable |
| Jeffrey Proctor |
FBI Agent |
Day 46
defense 5 |
|
| Tom Mayhall |
FBI Agent |
Day 46
defense 5 |
Discussed the questioning of Kay Morgan,
including the discrepancies in dates concerning a conversation she had
with Bill Owens, that should have been on tape. |
| Kay Morgan |
HealthSouth VP |
Day 46
defense 5 |
One of the "Family members" She booked some
of the fraud. |
| Jean Davis |
VP of Inpatient Services |
Day 46
defense 5 |
Studied the Transmittal 1753 issue for
HealthSouth |
| Brandi White |
HealthSouth Senior Analyst in Treasury |
Day 46
defense 5 |
Handled cash management for HealthSouth. Did
not notice any problems. |
| Jim Whitten |
HealthSouth VP of Marketing |
Day 46
defense 5 |
His testimony for the defense had problems
because of discrepancies with statements he had made to the FBI. |
| Chuck Buchanan |
HealthSouth Accountant |
Day 46
defense 5 |
Testified about contractual adjustments. |
| Tony Tanner |
HealthSouth Founder & Corporate Compliance
Officer |
Day 47
defense 6 |
Because of multiple sclerosis, Tanner had
little recollection of the period of the fraud. |
| Daryl Brown |
President of Outpatient Services - East |
Day 47
defense 6 |
Testified that he didn't see any problems
with the books. |
| James Lamphon |
E&Y Auditor |
Day 47-48
defense 6-7 |
Testified about the auditing process E&Y
used. Said Scrushy didn't interfere and they didn't see fraud. |
| Sage Givens |
Board Member |
Day 48-49
defense 7-8 |
Venture capitialist and long time board
member. Testified about how execs were compensated, about the auditing
committee, and said that Scrushy did not interfere with the board. |
| George Strong |
Board Member |
Day 49
defense 8 |
Also said that Scrushy did not interfere
with the building. |
| Bill Horton |
Corporate Counsel |
Day 49
defense 8 |
Said he was unaware of the fraud. Testified
that Weston Smith came to him to ask what would happen if he didn't sign
10Q, but he did not follow up. |
| Jim Goodreau |
Chief of Security, at HealthSouth |
Day 49-50
defense 8-9 |
Testified that Owens told him there was a
big accounting problem and Scrushy didn't know. The cross examination
was cut short when he was asked an improper question. |
| Tim Renjilian |
Accounting Expert |
Day 50-52
defense 9-11 |
Testified that Scrushy's spending pattern
did not match the type of spending that would have been expected, if
fraud was involved. Said that his stock options had value before they
were exercised and before the fraud. |
Pat Foster
(not live) |
Division President, at HealthSouth |
Day 53
defense 12 |
He said his division had clean books, and
had no knowledge of the fraud. His testimony was given via a reading of
his SEC testimony. |
Larry Taylor
(not live) |
Division President, at HealthSouth |
Day 53
defense 12 |
He said that his division had clean books,
and had no knowledge of fraud. His testimony was given via a reading of
his SEC testimony. |
| Wayne Guay |
Compensation Expert |
Day 53-54
defense 12-13 |
Discussed the compensation of Scrushy and
how he matched up with the compensation of his peers. |
