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Ex-Siegelman aide agrees to pay state $50,000 restitution

MONTGOMERY (AP) — A key witness in the trial of former Gov. Don Siegelman and former HealthSouth Chief Executive Officer Richard Scrushy has agreed to pay the state $50,000 in restitution.

Former Siegelman aide Nick Bailey provided key testimony in the trial last summer that ended in the conviction of Siegelman and Scrushy on bribery and conspiracy charges.

Bailey pleaded guilty to accepting bribes and is to begin serving an 18-month sentence in federal prison later this year.

The amount of restitution — agreed upon by prosecutors and Bailey — is for losses suffered by the state in an ill-fated project to build two state warehouses.

Bailey testified that he accepted bribes from lobbyist Lanny Young in return for the state hiring a company owned by Young, called G.H. Construction, to build the warehouses.

In his restitution order, U.S. District Judge Mark Fuller said Bailey has also acknowledged owing $28,359 in back taxes to the federal government. Fuller said Bailey could negotiate the repayment of the back taxes with the Internal Revenue Service.

As part of his 2003 plea deal, Bailey pledged to cooperate with prosecutors. Defense attorneys described Bailey as a con man who lied to get a lighter sentence. Bailey served Siegelman in a number of roles, including confidential assistant and director of the Alabama Department of Economic and Community Affairs.

Siegelman and Scrushy are awaiting sentencing.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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