Former Adelphia Exec Cuts Plea Deal

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 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."

By Devlin Barrett