InvestorsJuly 24, 2003
Charter Communications Statement
ST. LOUIS--(BUSINESS WIRE)--July 24, 2003--Charter Communications today released the following prepared statement by President and CEO Carl Vogel in response to the indictment of four former employees in a 14 count wire fraud indictment returned by a federal grand jury as part of an investigation by the United States Attorney for Eastern Missouri into business practices at the company during 2000 and 2001:
The indictment of four former employees should not impact the company's ability to execute its operating plan going forward. The company's operating plan has shifted from a focus on acquisitions to delivery of a range of broadband and other services to the communities it serves.
Charter, which cooperated fully with the government in its investigation, was not charged. Neither the Company nor any of its current directors is a target of the inquiry.
We are pleased that in a public statement released by the U.S. Attorney in St. Louis, Charter was commended for its 'extraordinary' cooperation. Deputy Attorney General Larry D. Thompson, Chairman of President Bush's Corporate Fraud Task Force, said 'Charter Communications' cooperation with this investigation is to be commended. This cooperation helps the Government better allocate its limited resources. It helps to bring corporate wrongdoers to justice more quickly.'
In the same statement, the U.S. Attorney's office stated that 'the company's current non-target status is based, in part, on the extraordinary cooperation provided by Charter during the course of the investigation, including coming forward with possible criminal conduct at the company of which the Government was unaware.'
Charter's financial results for 2000 and 2001 were re-audited by KPMG, which took over Charter's audit responsibilities in April 2002 from Arthur Andersen. Related financial statements were fully restated to reflect the company's financial position and results of operations. The Company stands behind those restated results.
Charter had conducted an internal review of its business practices both before and during the government's investigation. The company has put in place a new management structure, which includes leadership consisting of well-regarded, independent industry professionals. The company promoted other key individuals with proven abilities to elevated positions of responsibility. Charter also implemented a comprehensive company-wide corporate compliance program designed to ensure that its employees comply fully with applicable laws and regulations and perform their job duties with integrity and accountability. In addition, the company has instituted new procedures intended to increase the transparency of its financial results to its shareholders and the public.
Charter will continue to cooperate closely with the United States Attorney's office in the inquiry. This cooperation remains a priority for Charter as it continues to attempt to put the investigation behind it and look to the future.
Two of the former employees -- Kent Kalkwarf and David Barford -- were terminated by Charter in 2002. James Smith left the company in 2001. David McCall left the company earlier this year.
Inquiries should be directed to David Andersen, Senior Vice President of Communications, 314.543.2213
CONTACT: Charter Communications David Andersen, 314-543-2213 SOURCE: Charter Communications