BIRMINGHAM, Ala., May 13 (UPI) -- A federal judge threw out two charges against HealthSouth Corp. founder Richard Scrushy, leaving 48 counts for jurors to consider in the corporate fraud case.
U.S. District Court Judge Karon Bowdre said prosecutors in the Birmingham, Ala., trial failed to provide enough evidence to prove that Scrushy caused former finance executive William Owens to falsify a March 2003 filing with the U.S. Securities and Exchange Commission.
The charge, alleging Scrushy violated the Sarbanes-Oxley corporate-fraud law, stemmed from a secret tape Owens made of a conversation with Scrushy, the Wall Street Journal reported.
The judge also dismissed an obstruction of justice charge that grew from the tape, which prosecutors said showed Scrushy tried to influence Owens' testimony in the SEC's insider trading investigation of HealthSouth.
However, the judge said the two men were talking about something else.
The ruling left 48 counts for the jury to consider next week.
