United States v. Siegelman

561 F.3d 1215, 48 A.L.R. 6th 571, 2009 U.S. App. LEXIS 5369, 2009 WL 564659
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 6, 2009
Docket07-13163
StatusPublished
Cited by24 cases

This text of 561 F.3d 1215 (United States v. Siegelman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Siegelman, 561 F.3d 1215, 48 A.L.R. 6th 571, 2009 U.S. App. LEXIS 5369, 2009 WL 564659 (11th Cir. 2009).

Opinion

PER CURIAM:

Don Eugene Siegelman is the former Governor of Alabama. Richard Scrushy is the founder and former Chief Executive Officer of HealthSouth Corporation, a major hospital corporation with operations throughout Alabama. The defendants were convicted of federal funds bribery, in violation of 18 U.S.C. § 666(a)(1)(B), and five counts of honest services mail fraud and conspiracy, in violation of 18 U.S.C. §§ 1341, 1346, and 18 U.S.C. § 371. Sie-gelman was also convicted of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3).

The defendants’ bribery convictions were based on allegations that they made and executed a corrupt agreement whereby Scrushy gave Siegelman $500,000 in exchange for Siegelman’s appointing him to Alabama’s Certificate of Need Review Board (the “CON” Board). The honest services mail fraud convictions incorporated the same bribery allegations, but also alleged that Scrushy used the CON Board seat obtained from Siegelman to further HealthSouth’s interests. Siegelman’s obstruction of justice conviction is based on allegations that he corruptly influenced another to create a series of sham check transactions to cover up a “pay-to-play” payment to him. 1

This is an extraordinary case. It involves allegations of corruption at the highest levels of Alabama state government. Its resolution has strained the resources of both Alabama and the federal government.

But it has arrived in this court with the “sword and buckler” of a jury verdict. The yeoman’s work of our judicial system is done by a single judge and a jury. Twelve ordinary citizens of Alabama are asked to sit through long days of often tedious and obscure testimony and pore over countless documents to decide what happened, and, having done so, to apply to these facts the law as the judge has explained it to them. And they do. Often at great personal sacrifice. Though the popular culture sometimes asserts otherwise, the virtue of our jury system is that it most often gets it right. This is the great achievement of our system of justice. The jury’s verdict commands the respect of this court, and that verdict must be sustained if there is substantial evidence to support it. Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 86 L.Ed. 680 (1942).

Furthermore, to the extent that the jury’s verdict rests upon their evaluations of the credibility of individual witnesses, and the reasonable inferences to be drawn from that testimony, we owe deference to those decisions. In our system, the jury decides what the facts are, by listening to the witnesses and making judgments about whom to believe. This they have done, and, though invited to do so, 2 we shall not substitute our judgment for theirs.

This is not to say that the judgment below is inviolable. Our duty as an appel *1220 late court is to answer properly presented questions from the parties in the case as to whether the law was correctly interpreted and applied by the district court. Juries apply the law as the judge instructs them, and the defendants’ lawyers assert that there were errors in those instructions. Defendants also contend that there were other legal mistakes committed during the course of this trial. With this in mind, we have reviewed the claims of legal error in the proceedings below, and our opinion as to their merit follows. First, however, we recount the facts as the jury found them. 3

I.

Don Siegelman was elected Governor of Alabama in 1998 on a campaign platform that advocated the establishment of a state lottery to help fund education in Alabama. After his election, he established the Alabama Education Lottery Foundation (the “Foundation”) to raise money to campaign for voter approval of a ballot initiative to establish a state lottery. Darren Cline, the Foundation’s fundraising director, testified that Siegelman “called the shots” on the lottery campaign. The lottery initiative was eventually defeated in a referendum held in October of 1999.

On March 9, 2000, the Foundation borrowed $730,789.29 from an Alabama bank in order to pay down debt incurred by the Alabama Democratic Party for get-out-the-vote expenses during the lottery campaign. This note was personally and unconditionally guaranteed by Siegelman. 4

Richard Scrushy, the CEO of Health-South had served on the CON Board under three previous governors of Alabama. The CON Board is an arm of the State Health Planning and Development Agency and exists to prevent unnecessary duplication of healthcare services in Alabama. The Board determines the number of healthcare facilities in Alabama through a process that requires healthcare providers to apply for and obtain a certificate of a healthcare need before opening a new facility or offering a special healthcare service. The CON Board decides which healthcare applications will be approved for an announced healthcare need, choosing between competing applications and ruling on objections filed by an applicant’s competitor. The Governor of Alabama has sole discretion to appoint the members of the CON Board, who serve at his pleasure. 5 Scrushy had supported Siegelman’s opponent in the just prior election.

Nick Bailey was one of Siegelman’s closest associates and had worked on Siegel-man’s campaign for governor. Cline testified that “whatever [Bailey] told me that the Governor wanted was what the Governor said.” Cline also testified that “if the Governor wanted to get something done, then [Bailey] went ahead — blindly went ahead and did it.”

Bailey testified that, after Siegelman’s election in 1998, Siegelman met with Eric Hanson, an outside lobbyist for Health-South, and told Hanson that because Scrushy had contributed at least $350,000 to Siegelman’s opponent in the election, Scrushy needed to “do” at least $500,000 in order to “make it right” with the Siegel-man campaign. Bailey testified that Sie-gelman was referring to the campaign for the lottery initiative, and that Hanson was to relay this conversation to Scrushy. Bailey also testified that, in another conversation, Hanson told Bailey that Scrushy wanted control of the CON Board.

*1221 Mike Martin is the former Chief Financial Officer of HealthSouth. He testified that having influence over the CON Board was important to Scrushy and Health-South because it determined the number of healthcare facilities in the state, thereby affecting HealthSouth’s ability to grow. He testified that Scrushy told him that to “have some influence or a spot on the CON Board,” they had to help Siegelman raise money for the lottery campaign.

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Bluebook (online)
561 F.3d 1215, 48 A.L.R. 6th 571, 2009 U.S. App. LEXIS 5369, 2009 WL 564659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-siegelman-ca11-2009.