Racketeering—Richard Scrushy

Richard Scrushy and former Alabama Governor Don Siegelman have been indicted in Alabama on charges that they belonged to a “widespread racketeering conspiracy.”^[1] Mr. Scrushy had previously been acquitted of a $2.7 billion accounting fraud charge.^[2] The charges were originally brought in May, but filed under seal so that Mr. Scrushy’s trial in the fraud case would not be disrupted.^[3]

Mr. Siegelman is accused of soliciting more than $1 million for himself, his campaign for governor, and his unsuccessful attempt to get Alabama voters to approve a state lottery.^[4] Mr. Scrushy is accused of making “two disguised payments” totaling $500,000 to Mr. Siegelman in exchange for the latter appointing him to Alabama’s Certificate of Need Review Board, which makes decisions on hospital expansions.^[5]

Mr. Siegelman was charged with violating the RICO act and with mail fraud and wire fraud. Mr. Scrushy was charged with bribery and mail fraud^[6]

Two other men, Paul Michael Hamrick and Gary Mack Roberts, have also been indicted.

RICO Violations
Under 18 U.S.C. § 1962, it is a crime for a person associated with an enterprise engaged in interstate or foreign commerce to conduct or participate, directly or indirectly, in the conduct of that enterprise’s affairs through a pattern of racketeering activity.^[7] The term “racketeering activity” includes bribery and mail and wire fraud.^[8]

The punishment for violating section 1962 is a fine, imprisonment for up to 20 years, or both.^[9]

Bribery
Under 18 U.S.C. § 201, it is a crime for a person to corruptly give anything of value to any public official with the intent to influence any official act.^[10]

The punishment for violating section 201 is a fine of up to $250,000 or not more than three times the monetary equivalent of the thing of value, whichever is greater, imprisonment for up to fifteen years, or both.^[11]

Mail and Wire Fraud
We have previously discussed these crimes here.

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[1] Phillip Rawls, Ex-Ala. Governor, Hospital Exec Indicted, Seattle Post-Intelligencer, Oct. 27, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Scrushy, Ex-Alabama Governor Indicted in Bribery Case, Bloomberg.com. Oct. 27, 2005, available here.
[7] 18 U.S.C. § 1962(c).
[8] Id. § 1961(1)(b).
[9] Id. § 1963(a).
[10] Id. § 201(b)(1)(A).
[11] Id. § 201(b).