Former Adelphia Communications Corp. director of internal reporting Michael Mulcahey contradicted earlier testimony from former vice president of finance Jim Brown during the ongoing Adelphia fraud trial Monday, AP reported.
Brown had testified last month that interest income was used to inflate cash-flow data Adelphia presented to its bank lenders. But Mulcahey countered Monday that it was legitimate to include interest income in data reported to banks because Adelphia always treated it as a cash item, according to AP.
Mulcahey also testified that he met regularly with Brown and other executives on data presented to the banks in the 1990s, but those meetings stopped at some point, AP reported.
Former Adelphia chairman John Rigas, his sons -- former chief financial officer Timothy Rigas and former executive VP of operations Michael Rigas -- and Mulcahey are on trial for 24 counts of conspiracy, wire fraud, bank fraud and securities fraud. All four men have pleaded not guilty.
Brown pleaded guilty to conspiracy, securities fraud and wire fraud in November 2002.