May 24 (Bloomberg) -- Adelphia Communications Corp. founder John Rigas and his son, Timothy, lost an appeal of their convictions for looting the cable-television operator, putting them a step closer to prison terms of at least 15 years.

A federal appeals court in New York today upheld the convictions of John Rigas, 82, sentenced to 15 years, and Timothy, 51, sentenced to 20 years. Both are free on bail in Coudersport, Pennsylvania, where John Rigas started Adelphia in 1952 and built the fifth-largest U.S. cable firm before its collapse in 2002.

The three-judge panel cited ``the overall strength of the government's case'' in a unanimous opinion affirming most of the jury's decision. The judges said they were swayed by ``the weight of evidence supporting the jury's verdict on each charge.''

John Rigas is the oldest chief executive convicted in the wave of federal prosecutions that started after Enron Corp. filed for bankruptcy in 2001. The Rigases can ask the full appeals court to review the fraud case or go to the U.S. Supreme Court. Typically, such appeals are denied. The trial judge may soon revoke their bail.

John and Timothy Rigas were convicted in 2004 of conspiracy, securities fraud and bank fraud. The jury in New York deadlocked on charges against another son, Michael, 53. He later pleaded guilty to a lesser charge and avoided prison.

22 Counts Upheld

The appeals court upheld 22 of 23 counts, tossing out one of two bank fraud convictions.

Timothy Rigas's lawyer, John Nields, wouldn't comment. John Rigas's lawyer, Paul Shechtman, didn't return a call seeking comment. Rebekah Carmichael, a spokeswoman for U.S. Attorney Michael Garcia, wouldn't say whether prosecutors will seek to revoke the Rigases' bail.

John Rigas, through his wife, Doris, wouldn't comment.

John Rigas had heart surgery in 1999 and has bladder cancer. At the sentencing hearing, U.S. District Judge Leonard Sand said Rigas can leave prison after serving at least two years if doctors say he has less than three months to live.

In interviews with Bloomberg News late last year, John Rigas denied wrongdoing and said he was a victim of prosecutors seeking to crack down on corporate crime after Enron. He said he is unprepared for prison.

``There's no way to prepare in my mind for anything like that, especially when you know you're innocent,'' Rigas said.

`Can't Sleep Well'

``You can't sleep well when so many bad things happened to you and your family,'' he said. ``My brain isn't working as well as it should. Fear creeps in. Stress creeps in. You imagine a whole lot of things. I can't imagine this happened to us. I made mistakes, but not illegal mistakes.''

Last July, Comcast Corp. and Time Warner Inc. bought Adelphia's cable properties for $17.6 billion. On Jan. 3, a U.S. Bankruptcy Court judge in New York approved the company's plan to emerge from bankruptcy, pay creditors and cease doing business. The company is now based in Greenwood Village, Colorado.

Jurors found that the Rigases lied about the source of $1.6 billion used to buy company stock and debt and stole $51 million in cash advances.

The Rigases spent $26.5 million in company money to buy timberland near their home and $13 million to build an Adelphia golf course on land owned by the company and the family, prosecutors said. Adelphia paid for antiques, family residences and a personal trainer, witnesses said.

Collapse Began in 2002

Adelphia began its collapse on March 27, 2002, when it disclosed the Rigases owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Within weeks, the Rigases resigned, Adelphia filed for bankruptcy, and John, Timothy and Michael Rigas were arrested.

John and Timothy Rigas argued on appeal that jurors should have heard from an accounting expert about co-borrowing loans. They said jurors heard too much evidence about acts before the period covered by the indictment, and they argued the evidence of bank fraud was too thin to support convictions.

They also said that a government witness, Robert DiBella, improperly testified as an expert.

The appeals court, in its 55-page decision, agreed with prosecutors, who said jurors didn't need an expert to understand that the Rigases falsely said they used their own money to buy $1.6 billion of the company's stock and debt. Nor did jurors need an expert to understand that the family failed to disclose it owed $2.3 billion on the co-borrowed loans, as prosecutors said.

GAAP Requirements

``The government was not required to present expert testimony about GAAP's requirements because these requirements are not essential to the securities fraud,'' the court said, referring to Generally Accepted Accounting Principles.

The appeals panel said DiBella didn't testify as an expert.

The Rigases face other legal battles. John and Timothy are scheduled for a federal trial on tax evasion and conspiracy charges starting Oct. 3 in Williamsport, Pennsylvania. They also are defending civil lawsuits filed by Adelphia, its shareholders, and its former auditors, Deloitte & Touche.

The Rigases lost most of their fortune, estimated at $1.5 billion in 1999, in the bankruptcy and to a restitution fund for investors. John Rigas helps his three sons -- Timothy, Michael and James -- run Zito Media, a cable company with 7,000 subscribers. He owns a movie theater in Coudersport and a farm that sells Christmas trees, maple syrup, honey and hay.

No Intention to Defraud

John Rigas said he never intended to defraud Adelphia and the cash advances were loans he would repay. He said he relied on auditors at Deloitte & Touche and lawyers at the Pittsburgh firm Buchanan Ingersoll, now Buchanan Ingersoll & Rooney.

The Rigases didn't testify at the trial and didn't call witnesses from Deloitte or Buchanan Ingersoll. Deloitte agreed to pay $50 million to settle a civil lawsuit by the U.S. Securities and Exchange Commission and $210 million to settle with Adelphia investors. John Rigas said he and his son spent $40 million on their legal defense.

Deloitte, Adelphia and the Rigases have sued each other and face a civil trial this year in state court in Philadelphia over who bears responsibility for the fraud. Investors also are suing Buchanan.

James Brown, a former chief financial officer at Adelphia who pleaded guilty and testified as a prosecution witness, told jurors he discussed the fraud extensively with the Rigases, particularly Timothy. John Rigas said Brown was a liar.

The case is U.S. v. Rigas, 1:02-cr-01236, U.S. District Court, Southern District of New York (Manhattan).