Adelphia Witness Tells of Phony Documents

Adelphia Communications Corp.’s former treasury supervisor testified that he created phony documents to make it appear that founder John Rigas’ family used $423 million in cash to buy company securities.

James Helms testified at the fraud trial of John Rigas, 79, and two of his sons, Michael, 50, and Timothy, 47, that the documents showed the family bought $260 million in stock and $163 million in notes with “immediately available funds.” In fact, the Rigases paid nothing for the securities, he said.

Helms said his boss, former Assistant Treasurer Michael Mulcahey, who is on trial with the Rigases, told him to create documents in March 2002 after Adelphia’s auditors questioned the purported sale dated Oct. 22, 2001.