View Full Version : Motorola says involved in SEC probe re Adelphia



cablewithaview
08-03-2006, 11:08 PM
NEW YORK, Aug 3 (Reuters) - Motorola Inc said on Thursday it is involved in an investigation by U.S. financial regulators regarding bankrupt cable operator Adelphia Communications Corp .

Motorola was a supplier of television set-top boxes to Adelphia, which was bought on Monday by Time Warner Inc and Comcast Corp .

In its quarterly filing at the Securities and Exchange Commission, Motorola said that as part of its bankruptcy procedure Adelphia on June 23 objected to Motorola's claim for payment, asserting "fraudulent transfers" and "aiding and abetting fraud." Adelphia is alleging damages in excess of $1 billion, according to Motorola.

Asked if Motorola was a target of the SEC investigation, a spokeswoman declined comment.

Adelphia founder John Rigas and his son Timothy were convicted in July 2004 on 18 counts each of bank fraud, securities fraud and conspiracy for their roles in concealing loans and stealing millions from the cable operator.

Motorola reiterated, in an e-mail statement on Thursday in response to questions about the filing, that it had been "unaware of fraudulent activities being conducted by the principals of Adelphia."

Motorola, the world's second-biggest cellphone maker, also said that it had "no control over its customers' accounting decisions and played no role in Adelphia's decision on how to account for Adelphia's transactions."

The company also said it has reviewed its accounting for the sales to Adelphia and is confident they were recorded on Motorola's books in accordance with generally accepted accounting principles.

Adelphia filed for bankruptcy in June 2002, soon after the company disclosed that, as a co-borrower, it was liable for the funds the Rigases borrowed.

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Reigster at SatelliteGuys