Probe at Microsoft tycoon's firm

THE cable company controlled by billionaire Microsoft co-founder Paul Allen has revealed it faces a federal investigation over its accounting practices. Charter Communications, the number four US cable TV operator, said it is under investigation by federal prosecutors in Missouri over the way it accounts for expenses.

That makes it the latest company to face a criminal investigation against the backdrop of scandals such as Enron, WorldCom and Adelphia. Charter said it had been served with a subpoena requesting documents relating to the way it treats costs for reconnecting subscribers.

In February, Charter said it would increase reserves for unpaid accounts and would disconnect 120,000 subscribers who were not paying their bills. That number is now to be increased to 145,000. Allen's company was last week named in a class action lawsuit from shareholders alleging that it used misleading accounting methods. Charter has denied the allegations.