Posted on: Friday, July 9, 2004

Ex-CEO and son guilty of fraud

By David Lieberman and Michael McCarthy
USA Today

NEW YORK — Adelphia Communications founder John Rigas yesterday became the first former CEO of a major company to be convicted of accounting fraud in the post-Enron era.

A U.S. District Court jury found Rigas and his son and former CFO, Timothy, guilty of conspiracy and bank and securities fraud. They were acquitted of wire fraud.

Prosecutors say they bilked shareholders of the No. 5 cable operator out of $3.2 billion while siphoning millions for personal use.

John Rigas, 79, and Timothy, 47, each could get up to 25 years in prison. They and their lawyers wouldn't comment on the decisions.

Also among four executives on trial was another son, Michael, 50, the former executive vice president for operations. Jurors acquitted him of conspiracy and wire fraud and said they couldn't reach verdicts on the securities and bank fraud charges. Judge Leonard Sand ordered the jurors to return today to continue those deliberations.

Michael Rigas' lawyer, Andrew Levander, called it a "bittersweet day."

Jurors acquitted a fourth defendant, former assistant treasurer Michael Mulcahey, 46, on all charges. His lawyer, Mark Mahoney, called the decision "a great relief. We couldn't be happier."