Former Adelphia Executives Report to Prison

After fighting one of the US's largest corporate fraud cases, Adelphia Communications founder John Rigas and his son Tim Rigas, the company's former chief financial officer, reported to federal prison in North Carolina today; the pair was convicted in 2004 on multiple charges of securities fraud, conspiracy to commit bank fraud and bank fraud but had remained free while an appeal was pending. John, 82 years old, recieved 15 years while Tom, 51, received 20 years. Although the two had requested that they be allowed to serve their time together at a facility close to their homes in Coudersport, Pennsylvania, the federal Bureau of Prisons had other plans, sending them to the Butner Federal Correctional Complex, located about 45 minutes northwest of Raleigh.Among the Rigas's crimes leading to the collapse of one of the US's largest cable companies were concealment of over $2.3 billion in debt to investors and use of company funds for personal gain, including the purchase of 100 pairs of slippers for Timothy Rigas. Authorities began investigating the company in 2002 after the company announced its 2001 results with a press release that included a footnote on its final page noting Adelphia had billions in liabilities not previously reported on its balance sheet. View: Full Story on SiliconValley.com Read full story...

 


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