One Former Charter Executive Pleads Guilty

One of four former Charter Communications Inc. executives accused of conspiring to defraud investors pleaded guilty Friday, and authorities said he was cooperating in the case against the three other men.

Former Senior Vice President David McCall, 48, was among those charged Thursday in what prosecutors called schemes to boost revenue, cash flow and subscriber numbers to help the nation’s third-biggest cable television company meet financial projections.

McCall, of Laurens, S.C., pleaded guilty to one count of conspiracy to commit wire fraud. He was freed on $10,000 bond, and sentencing was scheduled for Oct. 17.

McCall’s plea was part of an agreement with prosecutors that calls for him to work with authorities in the case against the other executives, U.S. Atty. Ray Gruender said.

Charter, based in suburban St. Louis, is controlled by Microsoft Corp. co-founder Paul Allen and has about 6.8 million subscribers. It is the third-largest cable operator in the Los Angeles area.

Former Chief Operating Officer David Barford, 44, of Chesterfield, Mo., and former Chief Financial Officer Kent Kalkwarf, 45, of St. Louis, had initial court appearances Friday before U.S. Magistrate Judge Terry Adelman. Both face 14 counts of mail fraud, wire fraud and conspiracy to commit wire fraud.

The two are expected to enter pleas at arraignments Tuesday. They were released on $100,000 bond each.

The fourth defendant, former Senior Vice President James Smith, 55, of Southern California, was expected to make an initial court appearance Monday. He was indicted on eight counts of wire fraud and conspiracy.

Gruender said the executives schemed in 2000 and 2001 to inflate revenue and operating cash flow and make the company appear to have more cable subscribers than it really did.

The four executives instructed employees to delay disconnecting service to customers seeking to end their service and to those failing to pay their bills until after the end of the financial quarter, Gruender said.

“I was instructed to meet certain quarterly expectations,” McCall said during questioning Friday by U.S. District Judge Carol Jackson. “I did that and instructed people that worked for me to do that.”

Lawyers for Barford and Kalkwarf said their clients were innocent.

Charter shares rose 4 cents to $4.82 on Nasdaq.