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November 05, 2003 - Image 2

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2 - The Michigan Daily - Wednesday, November 5, 2003

NATION/WORLD

Health-care firm's NEWS IN BRIEF i3

CEO arrested for
violating new law

AP PHOTO
A U.S. Army soldier stops a car outside the "Green Zone" in central
Baghdad after mortars were fired into the area yesterday, hitting
the headquarters of the U.S.-led occupation, wounding three.
Turkey won' send
troops, official says

BIRMINGHAM, Ala. (AP) - For-
mer HealthSouth chief Richard Scrushy
was arrested yesterday on charges of fal-
sifying the books at the health-care
chain by $2.7 billion to enrich himself
- the first CEO charged under a new
federal law prompted by the wave of
corporate accounting scandals.
Prosecutors said that because
Scrushy's compensation was tied in part
to HealthSouth's performance, he pock-
eted $267 million in salary, bonuses -and
stock options and surrounded himself
with yachts, luxury cars, fine art and
jewels.
Scrushy, 51, pleaded innocent to the
85 counts - which included fraud, con-
spiracy and money-laundering - and
was released on $10 million bail secured
by his three homes and 360 acres of
plantation property.
Fourteen former HealthSouth
employees, including all five of the con-
glomerate's former chief financial offi-
cers, already have pleaded guilty to
fraud charges since the Justice Depart-
ment began investigating the coast-to-

coast chain of surgery and rehabilitation
clinics in March. Another person has
agreed to plead guilty.
The indictment, returned Oct. 29 and
released yesterday, had been sealed amid
government claims
that Scrushy's
bodyguards had
weapons and spy
w equipment that
intimidated wit-
nesses.
The charges
against Scrushy
carry a total of 650
years in prison and
Scrushy $36 million in
fines, though if convicted he would get
far less under federal sentencing guide-
lines. A trial date of Jan. 5 was set.
The charges include falsely attesting
to the accuracy of corporate statements.
Scrushy becomes the first CEO
charged under the Sarbanes-Oxley Act,
passed in reaction to the wave of scan-
dals that engulfed Enron, WorldCom
and giant corporations.

Three wounded in
attack on American
facility in Iraq
WASHINGTON (AP) - In a major
setback to U.S. efforts to attract mili-
tary help in Iraq, a Turkish official
said yesterday his country won't send
peacekeeping troops without a signifi-
cant change in the situation there. That
makes it virtually certain the United
States will have to send thousands
more U.S. reservists early next year.
No additional countries have con-
tributed forces in Iraq since the United
Nations Security Council approved a
new resolution last month. Bush
administration officials had hoped the
U.N. action would persuade reluctant
allies to send more forces. Turkey had
been the best hope.
In Baghdad, insurgents struck yes-
terday at the center of the U.S.-led
occupation, firing mortars after sun-
down at the heavily guarded district
that includes major American facili-
ties. Three people were wounded, the
Pentagon said.
Spain, a close U.S. ally, withdrew

many of its diplomats because of esca-
lating violence.
Huge explosions thundered
throughout central Baghdad about
7:45 p.m. as the insurgents targeted
the 2-square-mile "Green Zone,"
which includes coalition headquarters,
the military press center and other key
facilities.
At the Pentagon, Lt. Col. Jim Cas-
sella said three people were wounded
in the attacks but it was unclear if they
were military or civilians.
Turkey's ambassador to the United
States, Osman Faruk Logoglu, said his
country will not send troops without
an explicit invitation from the U.S.-
appointed Iraqi Governing Council -
some of whose members have vigor-
ously opposed the idea.
The ambassador said it was up to
the Americans to press the Iraqi coun-
cil to make the invitation - a move he
said the United States appears unwill-
ing to make.
"We felt that the Coalition Provi-
sional Authority and also officials here
in Washington could have probably
persuaded the Iraqi Governing Coun-
cil earlier on this issue," Logoglu said.

Gubernatorial races
offer glimpse of '04

The Associated Press
Rep. Ernie Fletcher easily won the
Kentucky governor's seat yesterday,
ousting Democrats from power after
32 years. Mississippi Democratic
Gov. Ronnie Musgrove fought to
keep his job against Washington lob-
byist Haley Barbour as the GOP
sought to make further inroads in the
South.
Fletcher, a three-term congress-
man, defeated state Attorney General
Ben Chandler, polling 55 percent, or
593,508 votes, to the Democrat's 45
percent, or 484,938 votes, with all
precincts reporting.
With 23 percent of Mississippi
precincts reporting, Barbour had 54
percent, or 106,968 votes, to 45 per-
cent, or 88,881 votes, for Musgrove.
In Philadelphia, one of three big-

city mayoral races, Democratic
incumbent John Street handily
defeated Republican businessman
Sam Katz, 59 percent to 41 percent.
In both Kentucky and Mississippi,
candidates tried out slogans and
strategies that could well be used in
the 2004 presidential race.
Mississippi Democrats criticized
Barbour as a "Washington insider" as
President Bush, Vice President Dick
Cheney and other top GOP officials
came to campaign for him.
In Kentucky, party activists argued
that a vote for Chandler would tell
the White House its economic policy
is a failure.
State Republican Chairwoman
Ellen Williams said Bush helped
swing the race in western Kentucky, a
conservative Democratic area which
both campaigns said was crucial.

HEADLINES FROM AROUND THE W RLD
EL CAJ N, Calif.
Firefighters stall region's biggest blaze
Firefighters contained the biggest and deadliest of Southern California's
wildfires yesterday and turned their attention to mopping up other blazes and
heading off mudslides when the rains come.
San Diego County's 280,000-acre Cedar Fire was fully surrounded after cool
weather and on-and-off rain helped firefighters.
"It's a load off," said Lora Lowes, a spokeswoman for the firefighting effort.
Officials said four other fires were expected to be contained by day's end.
Firefighters got a morale boost from a visit by President Bush, who surveyed
some of the damage done by the blazes that have killed at least 22 people, destroyed
about 3,600 homes and burned more than 740,000 acres of brush and timber.
The next danger could be mudslides, because the fire has burned away the
trees and bushes that keep soil in place on hillsides. Crews planned to begin
reseeding, digging flood-control trenches and bringing in sandbags.
Crews also planned to move away from the front lines to hunt for hot spots
and possibly bodies that have not been counted.
"They're going area by area, systematically, to the communities that burned,"
Lowes said.
COLOM, sri Lanka
President disrupts government in power bid
Sri Lanka's president stunned this island nation yesterday when she suspended
Parliament, sacked three Cabinet ministers and deployed troops around the capital
- moves that endanger the fragile peace process with Tamil Tiger rebels.
President Chandrika Kumaratunga - who is commander of the armed forces
and has considerable executive authority under the constitution - made the sur-
prise power grab against her political rival, Prime Minister Ranil Wickremesinghe,
while he was in Washington to meet with President Bush.
Wickremesinghe hit back, accusing Kumaratunga of endangering the government's
bid to end two decades of civil war on this tropical island off the southern tip of India.
"The irresponsible and precipitous action of the president is aimed at plunging the
country into chaos and anarchy," Wickremesinghe said in a statement from Wash-
ington.
Kumaratunga has been critical of how Wickremesinghe has handled peace efforts
with the Tamil Tigers, arguing his government has given too many concessions with-
out ensuring that the rebels abandon their armed struggle for a separate homeland.
RAMALLAH, West Bank Edwards challenged the former Ver-
mont governor in a hot, hip campaign
Arafat slows new debate.
Cabinet's formation "No, I wasn't, John Edwards," Dean
shot back, adding that to win, Democ-
Yasser Arafat delayed the formation rats must appeal to working-class white
of a new Cabinet yesterday by block- voters in the South who consistently
ing his premier's choice for security support Republicans "against their own
chief, a move that will slow efforts to economic interests."
restart peace talks with Israel after a The exchange was the sharpest of the
three-month freeze, Palestinian offi- night in a debate that generally veered
cials said. away from campaign issues such as
Prime Minister Ahmed Qureia has Iraq and the economy, and into areas of
assigned all Cabinet portfolios interest to younger voters.
except interior minister, the officials
said. Qureia met with Arafat yester- CHICAGO
day, but could not resolve the dispute 'Drano' for arteries
over the post.
Underlying the argument is Arafat's fights against disease
refusal to relinquish control over
some of the security services. Intravenous doses of a synthetic
Qureia's candidate for interior minis- component of "good" cholesterol
ter, Gen. Nasser Yousef, seeks broad reduced artery disease in just six
powers. weeks in a small study with star-
Qureia's emergency government tlingly big implications for treating
expires Tuesday, but he said he would the nation's No. 1 killer.
present his new Cabinet to parliament "The concept is sort of liquid
by next week. Drano for the coronary arteries,"
said Steven Nissen, a Cleveland
BOSTON Clinic cardiologist who led the
Dean won't take back study.
Larger and longer studies need to
Confederate flag quip be done to determine if the experi-
m mental treatment will translate into
Howard Dean, under fire from his fewer deaths, but the early results are
Democratic rivals, refused to apologize promising, said Daniel Rader, direc-
last night for saying the party must tor of preventive cardiology at the
court Southerners with Confederate University of Pennsylvania School of
flags in their pickup trucks. Medicine.
"Were you wrong, Howard? Were
you wrong to say that?" Sen. John - Compiled from Daily wire reports.
1 i
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