Cable Operators

Ex-Exec: Adelphia Fudged Subscriber Numbers

4/16/2004 12:00 AM Eastern

New York -- Former Adelphia Communications Corp. director of investor relations Karen Chrosniak testified Thursday that she fudged basic-subscriber numbers in 2000 and 2001 at the request of former vice president of finance Jim Brown and former chief financial officer Tim Rigas.

Tim Rigas; his father, former Adelphia chairman John Rigas; his brother, former executive VP of operations Michael Rigas; and former assistant treasurer Michael Mulcahey are on trial facing 24 counts of fraud and conspiracy. All four have pleaded innocent.

Chrosniak said she was asked by either Brown or Tim Rigas on three separate occasions to take subscribers from operations outside of Adelphia’s main cable business in order to boost basic-subscriber growth.

About 14,500 subscribers from a Brazilian cable operation in which Adelphia owned a minority interest were added to fourth-quarter-1999 figures; 28,000 from a Venezuelan cable operation were added to fourth-quarter-2000 results; and 27,000 high-speed-data-only customers were included in fourth-quarter-2001 statements, Chrosniak said.

Chrosniak -- who cut a deal with prosecutors in exchange for her testimony -- will continue on the stand Monday. According to sources inside the court, Brown (who cut his own deal) is expected to testify next week.

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