Shareholders sued adelphia communications corp and several individual directors for securities fraud, alleging violations of § § 10(b), 18 and 20(a) of the securities and exchange act of 1934, and § § s 11 and 15 of the securities act of 1933. The adelphia communications scandal the adelphia communications scandal strayer university, online acc 100 september 2009 the adelphia communications scandal before i get into the scandal i would like to give a brief history on how the company was founded. Adelphia communications corporation scandal 3 the charges that the sec brought against adelphia included: violation of rico act, breach of fiduciary duties, waste of corporate assets, abuse of control, breach of contract, unjust enrichment, fraudulent conveyance, and conversion of corporate assets.
In 2002, a massive accounting fraud and corporate looting scandal involving the founding rigas family made adelphia the 11th largest bankruptcy case in history, and the third--after worldcom and. Adelphia corporate scandal background of the company - company was founded in 1952, by john rigas in coudersport -adelphia is greek word for brother, so they were well known as the brothers that were cable providers. A brief analysis of the adelphia corporation scandal.
The adelphia communications scandal broke in 2002 when a footnote in a routine quarterly earnings statement revealed that the rigas family had borrowed more than $2 billion from the company but they didn't pay it back. Jury in adelphia communications fraud case hears clashing portrayals of john rigas and two of his sons, with prosecutor richard owens contending that they betrayed and looted company and defense. Imclone systems founder sam waksal pleaded guilty tuesday to bank fraud and conspiracy in an insider trading scandal that threatens martha stewart and her home decorating empire.
New york, july 9 -- a federal jury thursday found adelphia communications corp founder john j rigas and his son timothy, the former chief financial officer, guilty of conspiring to loot the. The adelphia communications scandal is considered one of the highest-profile white-collar fraud cases in the post-enron era adelphia communications was a cable company founded by john rigas in 1952. The revelations add worldcom to a growing list of companies struck by accounting scandals, led by enron corp, tyco international ltd and adelphia communications, that have shaken public faith in.
New york — adelphia communications corp founder john rigas and his son timothy were convicted thursday of conspiracy, bank fraud and securities fraud for looting the cable company and duping. Adelphia communications corporation named after the greek word for brothers, was a cable television company headquartered in coudersport, pennsylvania adelphia was the fifth largest cable company in the united states before filing for bankruptcy in 2002 as a result of internal corruption. The powerpoint ppt presentation: adelphia communications: a case study jim mahar carol is the property of its rightful owner do you have powerpoint slides to share if so, share your ppt presentation slides online with powershowcom. The revelation adds worldcom to a growing list of companies struck by accounting scandals, led by enron corp, tyco international ltd and adelphia communications , that have shaken public faith. Worldcom has revealed a further $33bn in accounting errors, doubling the size of the accounting scandal at america's second largest long distance phone company to more than $7bn.
New york (cnn) --the former vice president of finance for adelphia communications pleaded guilty to wire fraud and other charges in federal court thursdayjames brown, 40, pleaded guilty to counts. The adelphia scandal first broke in 2002, when federal prosecutors filed charges against the company and the company's founders, the rigas family, after a four-month investigation into. In the adelphia scandal, three founders of family-owned adelphia communications corp and two of the company's high-level executives were accused of fraud, conspiracy and theft on a massive scale.
Adelphia founder john rigas and two of his sons were arrested and charged with looting the cable-television company two other executives were also arrested. Mr thompson and mr cutler spoke to reporters about the arrest of several members of the rigas family for corporate fraud. Adelphia communications corp provides cable systems and services the company was founded in 1952 and is based in greenwood village, colorado 5619 dtc parkway greenwood village, co 80111.
This chapter discusses the events that led to chapter 11 bankruptcy filing of adelphia communications corp, in june 2002 accounting fraud and corporate looting scandal involving the rigas family, founders of adelphia, were major factors that led to the decline of the once prosperous company. The adelphia communications scandal jeremy krempasky globe university november 10, 2012 the company was founded in 1952 in the small town of coudersport, pennsylvania and incorporated in 1972. Adelphia communications adelphia was founded in 1952 by john rigas, who purchased a small cable franchise in coudersport, pennsylvania for $300 (healy & fabri, 2000. Adelphia communications corporation, time warner inc and comcast corporation seek approval to transfer control and/or assign fcc authorizations and licenses see the public notice for more information.