ArticleAdelphiaCBC

ArticleAdelphiaCBC - Rigas family's personal piggy bank at...

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Adelphia founder and sons indicted on fraud charges Last Updated: Monday, September 23, 2002 | 2:01 PM ET CBC News Almost two months after being arrested, Adelphia Communications founder John Rigas was indicted Monday on charges of conspiracy, securities fraud and wire fraud. Rigas, his sons Timothy and Michael, Adelphia's former vice-president of finance James Brown, and Michael Mulcahey, the company's former director of internal reporting, were also named in the indictment handed down in a Manhattan federal court. When Rigas and his sons were arrested in July, the images of them being led away in handcuffs were repeated frequently on television. The family members became synonymous with the accounting scandals that have rocked the business community and stock markets for most of this year. The Adelphia trio resigned their executive positions with the company in May amid questions over the firm's accounting. Family 'looted' Adelphia: indictment Rigas and his family "looted Adelphia on a massive scale, using the company as the
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Unformatted text preview: Rigas family's personal piggy bank at the expense of public investors and creditors," said a complaint unsealed in a Manhattan court in July. The allegations have not been proven in court. The Rigas family agreed to hand over $1 billion US in assets to cover personal loans they obtained from the company. Adelphia has estimated it is responsible for $3.1 billion US in Rigas family debts. The cable company defaulted on about $7 billion US in financing, but said in late June that as part of its bankruptcy protection filing it has lined up $1.5 billion US in new financing to help the company through its restructuring. Canadian banks are said to have at least $700 million in exposure to Adelphia. Adelphia also owns the Buffalo Sabres NHL hockey club. The league took over the running of the club after Adelphia filed for bankruptcy protection and is looking for a local buyer....
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This note was uploaded on 09/01/2010 for the course BAT4M BAT4M taught by Professor Katz during the Fall '05 term at Acadia.

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ArticleAdelphiaCBC - Rigas family's personal piggy bank at...

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