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AOL Time Warner acknowledges SEC inquiry

On the same day that Adelphia Communication Corp.'s Rigases were arrested and
charged with business fraud, AOL Time Warner Inc. acknowledged that the Securities
and Exchange Commission had begun a "fact-finding inquiry" into its
accounting practices.

CEO Richard Parsons confirmed the SEC inquiry during a teleconference
with investors and analysts Wednesday.

But Parsons also defended the company's accounting practices and said a
recent article in The Washington Post that cited accounting
irregularities at AOL Time Warner was groundless.

Parsons said the SEC notified the company of the inquiry after the
Post story ran last week.