NOW IT'S THE TAX MAN
Government wants $300 million from Rigases

Almost six years after a perfect storm of financial disclosures and government crackdown on corporate crime toppled cable television giant Adelphia Communications Corp., the tax man still has his hand out.

Federal inmates John Rigas and his son Tim, formerly chief executive officer and chief financial officer at Adelphia in Coudersport, are scheduled to go on trial in July for tax evasion. The IRS claims the Rigases are responsible for $300 million in taxes on money they illegally obtained from the corporation.

This week, the Rigases filed a motion asking Judge John E. Jones III of the U.S. Middle District Court in Williamsport to dismiss the charges. The defendants argue that the IRS is piling on, following their 2004 conviction on fraud and conspiracy charges.

The Rigases claim the federal government is prosecuting them twice, which amounts to double jeopardy or duplicate prosecution.

Assistant U.S. Attorney George J. Rocktashel said the government rejects the Rigases' argument and will soon respond to the motion. He said the prosecution is preparing to present its case when the trial opens in July.

John Rigas, 83, is serving a 15-year prison term and Tim, 52, faces a 20-year sentence. Both have maintained their innocence. Contrary to published reports, a family member told Endeavor News, the recent U.S. Supreme Court rejection of the Rigases' appeal does not exhaust the defendant's appeal options.

The 2nd U.S. Circuit Court of Appeals last year upheld most of their convictions on charges of securities fraud, conspiracy to commit bank fraud and bank fraud.

Their lawyers argued unsuccessfully that fraud charges should be thrown out because accounting terms were not explained to the jury.

Next step for the Rigases is resentencing based on the decision by the 2nd Circuit Court to throw out one of the two bank fraud convictions.

The two defendants also have the option of appealing their convictions on constitutional grounds.

The Rigases are still attempting to be reassigned to a federal penitentiary in Allenwood, Pa. They currently can receive mail addressed to either John J. Rigas 53983-054 or Timothy J. Rigas 53982- 054, FCI Butner Low, Federal Correctional Institution, P. O. Box 999, Butner NC 27509.

Adelphia collapsed into bankruptcy in 2002 after it disclosed $2.3 billion in off-balance-sheet debt that prosecutors charge the Rigases had hidden.

The company once employed upwards of 2,000 workers in Coudersport. About 20 employees cling to their jobs with the Adelphia of today in modular offices along Water Street in Coudersport.