Former Adelphia VP Pleads Guilty to Fraud Charges
By Mark Scott
New York City, NY – A former executive with Adelphia Communications entered a guilty plea Thursday to charges of securities fraud, conspiracy to commit securities fraud and bank fraud.
Under the plea deal, James Brown, who served as vice president of finance, will testify against John Rigas and two of his sons. The Rigases are accused of looting the now-bankrupt cable company.
Brown becomes the first person to plead guilty in the scandal.
Brown hopes to get more lenient treatment by cooperating with authorities. He had faced up to 30 years in prison if found guilty of the most serious charge, that of bank fraud.
Brown was responsible for preparing Adelphia's financial statements and providing information to investors and Wall Street analysts.
The elder Rigas, sons Michael and Timothy, and a fifth executive, Michael Mulcahey, have all pleaded innocent to charges stemming from their alleged roles in the scandal.