Witness to Tell of Rigas Cable Deals

Adelphia Communications Corp. funded John Rigas’ private acquisitions of certain cable systems, a prosecutor said Monday, bringing a new allegation into the fraud trial of Rigas, two of his sons and another former Adelphia executive.

The government will recall Christopher Thurner, formerly John Rigas’ accountant, to testify about the transactions as early as today, the prosecutor told the judge presiding in the case when jurors were outside the courtroom. Thurner was on the stand for several days in March testifying under a deal for immunity from prosecution.

Adelphia would send checks directly to the seller, then would book the amount as a receivable owed by John Rigas or another Rigas family member, Assistant U.S. Atty. Richard Owens said. Adelphia founder John Rigas agreed to acquire these cable systems for his private businesses in the early 1990s, but payments related to them continued into 1999, Owens said.

John Rigas, his sons Michael and Timothy and former assistant treasurer Michael Mulcahey are accused of conspiring to loot Adelphia for the Rigas family’s benefit and deceiving investors, creditors and the public about the company’s finances. They have pleaded not guilty.