Rigas breaks silence

A story published this week by Bloomberg News Service focuses on Coudersport's John Rigas.

Bloomberg conducted three interviews with Rigas, while also talking to townspeople for their reactions to the Rigases' travails and the downfall of Adelphia Communications Corp. more than four years ago.

Rigas, 82, is facing a 15- year prison sentence. He and his son Timothy, who could spend 20 years in prison, are awaiting a ruling on their request for a new trial following the 2004 convictions for conspiracy, securities fraud, and bank fraud.

"You can't sleep well when so many bad things happened to you and your family," said Rigas. "My brain isn't working as well as it should. Fear creeps in. Stress creeps in."

"I made mistakes, but not illegal mistakes," he continued. "There's no way to prepare in my mind for (prison), especially when you know you're innocent . . . Here were these Joe Palookas from a small town, nobody knew them. Make an example of them. They were after whitecollar crime. I think we became victims of that."

Bloomberg quotes one of the prosecutors, Christopher Clark, as arguing that the Justice Department never pressured him to show it was tough on corporate crime or the Rigases in particular.

John and Timothy Rigas are also facing a separate federal trial on tax evasion and conspiracy charges, starting May 3 in Williamsport. Their legal defense has already cost $40 million.

Bloomberg quoted John Rigas as saying that the family fortune is now largely gone, wiped out in the bankruptcy or forfeited to a restitution fund for investors.

Rigas said he never intended to defraud the company and the cash advances which were used as evidence against him were loans he planned to repay. He is critical of auditors at Deloitte & Touche and lawyers at Buchanan Ingersoll for providing bad advice.

"We were a victim because a couple, three key senior people turned on us," Rigas told Bloomberg.

Deloitte agreed to pay $50 million to settle a civil lawsuit by the U.S. Securities and Exchange Commission and $210 million to settle with Adelphia investors. Deloitte, Adelphia and the Rigases face a civil trial this year over who bears responsibility for the fraud. Investors also are suing Buchanan.

Buchanan spokeswoman Lori Lecker told Bloomburg, "The reality is that they were found guilty of their own misconduct."

The Rigases argue that their conviction must be overturned because prosecutors failed to call an accounting expert to explain the co-borrowing debt. The National Association of Criminal Defense Lawyers supports that argument.

Bloomberg also quotes John Rigas as maintaining hope that "ultimately justice will prevail and we'll get a favorable ruling, but maybe that's wishful thinking."

To see the Bloomberg News Service story on the Internet, go to www.bloomberg.com. Under the "News" icon, click on "Exclusive."

Money class to start

An approach to money management, often referred to as economic stewardship, is the focus of a class being presented at Emporium's First United Methodist Church. The second class is graduating from Financial Peace University and a third will start at 6:00 p.m. Additional information is available at the church office (486-0849) or by contacting Randy or Ruth at 486-0396.