Adelphia Founder, 4 Others IndictedSep 23, 2002 | AP Adelphia Communications Corp. founder John J. Rigas, his sons and two other former executives were indicted Monday on charges that included conspiracy, securities fraud and wire fraud.
The indictment, handed up in Manhattan federal court, named Rigas; his sons, Timothy and Michael; James R. Brown, former vice president of finance; and Michael C. Mulcahey, former director of internal reporting.
Rigas founded the Pennsylvania-based company that became the nation's sixth biggest cable television company.
Rigas and his sons were arrested at their Manhattan apartment on July 24. A criminal complaint charged them with fraud for allegedly hiding $2.3 billion in liabilities from investors.
The Rigases, who have denied any wrongdoing, have been free on $10 million bail each, secured by cash, land and other property.
Lawyers for the five former executives have denied that their clients have committed any wrongdoing.
Adelphia filed for Chapter 11 bankruptcy protection June 25. The Rigases stepped down from board seats and executive posts at the company in May.
Rigas and his sons also have been named as defendants in more than 40 civil lawsuits, including one the company filed the day of their arrests.
The Rigases resigned their executive positions with the company in May. Later that month, the family agreed to turn over $1 billion in assets to help cover loans, to turn over $567 million in cash flow from other cable companies the family owns, and to pledge all stock held by the family as collateral. Adelphia estimated it was liable for $3.1 billion in family debts.