Adelphia Executives Plead Not Guilty

Adelphia Communications Corp. founder John Rigas, two of his sons and two other former company executives pleaded not guilty to charges of defrauding the cable television system operator of more than $2.5 billion.

Authorities accused the Rigases of hiding $2.3 billion in debt, looting company funds to pay for personal expenses such as stock purchases and a golf course, and lying to investors about the company’s financial health. Adelphia sought bankruptcy protection and faces more than $20 billion in debt.

Rigas, 78, and sons Timothy, the former chief financial officer, and Michael, the former vice president for operations, entered not guilty pleas before U.S. District Judge Leonard Sand.

James Brown, the former vice president for finance, and Michael Mulcahey, the former director of internal reporting, also entered not guilty pleas.

The five men face as much as 30 years in prison.

Andrew Levander, an attorney for Michael Rigas, signaled a defense strategy when he said the main transactions in the indictment were approved by Adelphia’s former auditor, Deloitte & Touche, and by law firm Buchanan Ingersoll.