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Scruggs pleads Fifth, State Farm wants...

Scruggs pleads Fifth, State Farm wants answers

By: Magnolia Tribune - July 31, 2008

State Farm has filed an emergency motion asking a federal judge to compel Dickie Scruggs to answer the insurance company’s questions before he is sent off to prison Aug. 4.

“The Scruggs stonewall continues unabated,” the insurance company says in its motion, filed in the contentious case McIntosh vs. State Farm.

State Farm has been trying for more than a year to get to the bottom of Scruggs’ relationship with two former insurance adjusters who provided him company records and information about what they said was fraudulent handling of policyholders’ Katrina claims.

The McIntosh case is at the center of that debate. State Farm attempted to question Scruggs under oath, and sought documents from him, on Tuesday. Scruggs gave his name, but invoked his right to avoid self-incrimination to all questions State Farm and other attorneys posed during the daylong affair at the former Scruggs Law Firm in Oxford.

Scruggs’s son, Zach Scruggs, did the same when attorneys questioned him Monday. He is scheduled to report to prison Aug. 15.

Both Scruggses pleaded guilty in a judicial bribery case in North Mississippi, the elder Scruggs admitted he conspired to bribe the judge, while his son acknowledged that he failed to report a felony.

Sun Herald
7/30/8

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