0 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 WWWMICHIGANDAILY.COM The Michigan Daily (ISSN 0745-967) is published Monday through Friday during the fall and winter terms by students at the University of Michigan. One copy is available free of charge to all readers. Additional copies may be picked up at the Daily's office for $2. Subscriptions for fall term, starting in September, via U.S. mail are $105. 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