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Chrosniak: Adjustments Were 'Bogus’

4/25/2004 8:00 PM Eastern

Former Adelphia Communications Corp. director of investor relations Karen Chrosniak continued on the witness stand in the federal fraud trial of four former company executives last week.

She testified that the company’s accounting department made “bogus” adjustments to subscriber data and that former chief financial officer Tim Rigas gave false information to a stock analyst.

TOLD TO FALSIFY

Tim Rigas; his father, former Adelphia chairman John Rigas; his brother, former executive vice president 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’s testimony came after she said earlier she was instructed several times to falsify subscriber numbers by former Adelphia chief financial officer Tim Rigas and former vice president of finance Jim Brown.

CHAOTIC CONDITIONS

Under questioning from Kevin O’Brien, a lawyer for Michael Rigas, Chrosniak depicted the accounting operations as a bit chaotic.

She testified that subscriber numbers were often revised, and there were often discrepancies between internal data and numbers reported to the public.

Michael Rigas did not have responsibility for the accounting department.

Chrosniak is expected to stay on the stand at least until Tuesday morning, when Brown is expected to begin his testimony.

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