> Business - AP World Business
>
> Former Adelphia executive pleads guilty, agrees to testify
> Thu Nov 14,12:59 PM ET
> By DEVLIN BARRETT, Associated Press Writer
>
> NEW YORK - Former Adelphia executive James Brown pleaded guilty
> Thursday to securities fraud, conspiracy to commit securities fraud
> and bank fraud in a deal to testify against Rigas family members
> accused of plundering the now-bankrupt cable company.
> The former vice president of finance at Adelphia Communications
> Corp. was the first person to plead guilty in the scandal that
> authorities say cost investors more than $60 billion.
> He had faced up to 30 years in prison for the most serious charge,
> bank fraud, but hopes to get a far more lenient sentence by
> cooperating with investigators.
> During the proceeding in U.S. District Court in Manhattan on
> Thursday, it was disclosed that Brown had signed the plea agreement
> with prosecutors.
> Adelphia founder John Rigas, 78, his sons Michael, 48, and Timothy,
> 46, and a fifth executive, Michael Mulcahey, are also charged in the
> case, and have all pleaded innocent.
> Brown had a close personal and professional relationship with Tim
> Rigas, and worked on much of the financial reporting now at issue in
> the criminal case, said sources familiar with the probe.
> The 40-year-old former executive was responsible for preparing
> Adelphia's financial statements and providing information to
> investors and Wall Street analysts.
> A 102-page indictment charges the five executives allegedly looted
> corporate accounts, built a golf course with company money and used
> corporate jets for personal business, while saddling the company
> with massive debts and lying to investors.
> Officials believe the executives looted the firm of hundreds of
> millions of dollars.
> Prosecutors are seeking forfeiture from the five men of more than
> $2.5 billion for the alleged fraud and corporate looting.
> Former Securities and Exchange Commission (news - web sites) lawyer
> Seth Taube, now in private practice, said Brown would make an ideal
> witness against the Rigas family.
> "Brown is in the best position to testify against the family," Taube
> said. "It's very rare that a family member will turn on another
> family member, so the government is apparently picking the highest
> guy they can find other than a relative to testify against the Rigas
> family to make their case."
>
