By Associated Press
New York City, NY – The eldest son of Adelphia Communications founder John Rigas was too consumed with the nuts and bolts of the cable giant to be aware of alleged accounting fraud, his lawyer said Tuesday at the family's federal trial.
As a top executive, Michael Rigas focused on technology, programming and customer service, sometimes even fielding phone calls from customers, said defense attorney Andrew Levander.
Prosecutors allege "his case is about lying and greed," Levander said in the second day of opening statements. "They will produce no credible evidence that Michael Rigas was a liar or greedy."
Rigas, 50, who lives with his parents, relied on accountants who produced reports that were full of errors, Levander said. He told jurors none of the government witnesses would testify that the defendant ordered them to alter the books or destroy documents.
"The evidence will show that Michael Rigas was always above board," he said.
Prosecutors say that Rigas, his 79-year-old father and his brother Timothy stole tens of millions of dollars from the company's investors beginning in 1999 to support a lavish lifestyle. In 2002, the alleged fraud was exposed and the nation's fifth largest cable company was forced into bankruptcy reorganization.
The Greenwood Village, Colo.-based company has 5.3 million cable subscribers in more than 30 states.
On Monday, prosecutor Richard Owens acknowledged that the family was a pioneer in the cable television industry. But he said it traded on that goodwill to fool investors, "cooking the books" to make it appear the company was investing $1.5 billion when it was not.
Prosecutors allege that the defendants used company funds to pay for a variety of personal expenses, no matter how extravagant or personal. The excesses included a fleet of corporate jets, including a Gulfstream III from the King of Jordan, to serve the family as a "personal taxi service."
The jets carried the family from its home in tiny Coudersport, Pa., to New York City for shopping, and to a Beaver Creek, Colo. condominium that was renovated at company expense so the family could golf and ski, prosecutors said.
A fourth defendant, Michael Mulcahey, 46, has been accused of facilitating much of the theft as the company's assistant treasurer in charge of bank accounts and financial activity.
All the defendants pleaded innocent. Their trial is expected to last three months.