Former Adelphia Director Is Challenged

A defense lawyer continued Thursday to raise questions about the credibility of a former Adelphia Communications Corp. director, the government’s second witness in the fraud trial of the company’s founder and two of his sons.

Under cross-examination, Dennis J. Coyle conceded that he and other board members supported significant raises for three of the defendants -- former top Adelphia executives John, Michael and Timothy Rigas -- after he learned that the family’s businesses had drawn more than $2 billion in off-balance-sheet debt.

Earlier this week, Coyle said he was shocked when he learned during an audit committee meeting Feb. 28, 2002, that Adelphia probably would be liable for about $2.3 billion in debt drawn by the Rigases. The board endorsed giving the three Rigas executives raises during a March board meeting in Cancun that year, Coyle testified.

At the end of that month, Adelphia disclosed the off-balance-sheet debt to the public.

The company then chose to seek bankruptcy protection a few weeks later.

The government has accused the Rigases of using the cable giant as a “personal piggy bank” and orchestrating a scheme to mislead investors, creditors and the public about the company’s financial condition. Along with former Adelphia executive Michael Mulcahey, they have been charged with conspiracy and fraud.

Kevin O’Brien, who represents Michael Rigas in the case, continued to hammer Coyle with questions about lawsuits filed against him by shareholders of Adelphia and of FPL Group Inc., where he is general counsel.

Under direct examination last week, Coyle testified that the outcome of the Rigas case would have no effect on the lawsuits.

But this week, Coyle conceded under cross-examination that his testimony in this case could be used against him in the other lawsuits.