Former Alabama Governor Don Siegelman Re-Sentenced on Bribery, Conspiracy, Fraud, and Obstruction of Justice Charges

WASHINGTON—Former Alabama Governor Don Siegelman was re-sentenced today to serve 78 months in prison for his role in bribery, conspiracy, fraud, and obstruction of justice charges involving former HealthSouth CEO Richard M. Scrushy, announced Assistant Attorney General Lanny A. Breuer of the Department of Justice’s Criminal Division and Acting U.S. Attorney Louis V. Franklin Sr. of the Middle District of Alabama.

At a hearing today in Montgomery, Alabama, in addition to the prison term, U.S. District Judge Mark Fuller ordered Siegelman to serve three years of supervised release and to pay a $50,000 fine. Siegelman was originally convicted by a federal jury in June 2006 of seven counts of an indictment, involving bribery, conspiracy to commit honest services mail fraud, honest services mail fraud, and obstruction of justice.

In June 2007, Siegelman began serving a prison term on those convictions but was released on bond in March 2008, pending an appeal in which two honest services mail fraud counts were reversed. All five remaining counts were upheld in two opinions of the Eleventh Circuit Court of Appeals, and the U.S. Supreme Court denied further appellate review. The district court reviewed and denied all Siegelman’s various claims for a new trial prior to his re-sentencing today.

Siegelman stands convicted of bribery, conspiracy, and honest services mail fraud arising from a scheme in which Scrushy paid $500,000 to control a seat on the state regulatory board governing HealthSouth. Siegelman further stands convicted of obstruction of justice arising from a federal investigation of an alleged pay-to-play scheme with Alabama businessman Clayton “Lanny” Young.

“The outcome of this case reflects the unflagging commitment of the Department of Justice to hold public officials accountable for corruption,” said Assistant Attorney General Breuer. “The Criminal Division’s Public Integrity Section is determined to continue to vigorously pursue bribery cases involving federal, state, and local officials.”

“Today’s sentence is another welcomed step toward closure to a dark chapter in Alabama politics. Six years after the trial jury rendered its verdict, and the appellate courts reviewed the evidence, former Governor Don Siegelman remains convicted for the serious felonious crimes he committed while serving as governor of Alabama. The verdict, the appellate review, and the sentence have energized my faith in our legal system and renewed my commitment to prosecute politicians who commit bribery, honest services mail fraud, conspiracy, and obstruction of justice. I am very proud of the courage displayed by everyone who assisted in the prosecution of this very significant and important case,” said Acting U.S. Attorney Franklin.

The case is currently being prosecuted by Acting U.S. Attorney for the Middle District of Alabama Louis V. Franklin Sr., a senior career prosecutor in the U.S. Attorney’s Office; and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.