The former auditors of collapsed cable company Adelphia Communications Corporation were thwarted in their attempt to expose financial irregularities, a court has heard.
James Brown, Adelphia's former vice-president of finance told a Manhattan court how he and Adelphia executive Timothy Rigas persuaded auditors Deloitte & Touche to suppress sensitive financial information in 2001.
A year later the company filed for bankruptcy after it was discovered that the Rigas family, controllers of Adelphia, had borrowed nearly $2.3 billion (€1.9bn; £1.2bn) instead of the $250 million they claimed.
The deception was compounded by the fact that the Rigas clan used more than 50% of the money to buy Adelphia stock, rather than upgrading cable systems as they claimed.
Timothy Rigas, his father and Adelphia founder, John, brother, Michael, former executive vice president for operations; and Michael Mulcahey, former director of internal reporting, all deny bank fraud, securities fraud and conspiracy. The trial continues.
Data sourced from: New York Times; additional content by WARC staff