Charter Communications COO given paid leave

Charter Communications said its chief operating officer, David Barford, will remain on paid leave for an indefinite period as the company undergoes a federal probe into its accounting practices.

The company, which announced it was placing Barford on the paid leave, did not link him directly to the investigation. It did issue a late day statement yesterday that due to “the pendency of a previously announced grand jury subpoena … the most appropriate course of action at this time is to place Mr. Barford on paid leave pending the result of the investigation.”

Barford, whose duties are being assumed by President-CEO Carl Vogel, would have his status “reviewed” when the probe ends, the statement continued.

A St. Louis grand jury in August requested documents on how the company accounts for costs on current and former cable subscribers. At the time, the company said it would cooperate with the subpoena and expressed faith in its operation.

Charter, with 6.8 million subscribers in 40 states, is the nation’s fourth largest cable company. Paul Allen, a Microsoft co-founder, controls the company, which has been subjected to a series of class action lawsuits over the past three years. Earlier this month Charter, citing subscriber losses, said it would have lower-than-anticipated third quarter cash flow.

The company’s stock dipped 31% yesterday on the Barford news, closing at $1.20 on NASDAQ.

While the company said that President-CEO Carl Vogel would assume Barford’s responsibilities on an interim basis, it did not give a reason why its COO was being placed on the sidelines.