Adelphia Communications Accounting Scandal Description In spring of 2002 Adelphia Communications reported $2.3 billion in off- balance sheet liabilities. The owner John Rigas and his two sons Timothy and Michael are said to have deliberately hid the problems. The family was borrowing/ stealing the money to buy themselves extravagant things such a 6‚000 Christmas trees‚ expensive company cars and luxury homes. The family was also in the process of building their own golf course. This caused
Premium Son Bankruptcy English-language films
Introduction The Adelphia Communications scandal occurred in March‚ 2002 when three of the original founding family members which included the father John Rigas‚ and two of his sons Michael and Timothy‚ along with two other company executives were arrested for improperly taking assets from the nation’s sixth-largest cable television company. The scam involved one of the biggest financial frauds faced by a publically held company. In the end stakeholders were forced to absorb massive losses as
Premium Ethics Deontological ethics Immanuel Kant
------------------------------------------------- We have reviewed the financial information provided for Adelphia Communications Corporation for the years 1992-1996. We have also evaluated the Company’s position and strategy within the industry‚ standard industry practices‚ and evaluated the Company’s ability to repay debt. We have concluded that the Company should be considered high-risk; however the decision of whether to grant loans to the Company should be based on the creditor’s acceptable
Premium Debt Finance Personal finance
and banks. As many corporate executive from companies such Enron‚ WorldCom‚ and Tyco‚ were implicated in unethical accounting practices during the late 1990’s and early 2000’s‚ executives from Adelphia Communication Corporations did not escape the trend. The executives and senior management at Adelphia entered into transactions that blurred the lines between the employees’ financial interests and those of the company. The company guaranteed over $2 billion of loans to Rigas family members that
Premium Fraud
I think five of the skills that a forensic account would need are communication skills‚ detail oriented‚ professional and ethical behavior‚ sound judgment and discretion. Communication skills are vital in any profession. It allows you to convey information for others to receive. The problem with communication is that it can be interpreted differently by other intended parties. As a forensic accountant‚ communication skills‚ verbal and non verbal‚ are important when it comes to conducting
Premium Financial statements Accountancy Fraud
PAGE ONE Adelphia Founder And One Son Are Found Guilty Jury Remains Deadlocked On Second Son‚ Acquits Former Assistant Treasurer By PETER GRANT and CHRISTINE NUZUM Staff Reporters of THE WALL STREET JOURNAL July 9‚ 2004; Page A1 Notching another victory against the corporate excesses of the 1990s‚ prosecutors won criminal convictions against the father-and-son team of John and Timothy Rigas‚ former top executives at cable company Adelphia Communications Corp. However‚ they failed
Premium Jury Fraud Not proven
Corporate Culture Robert Alford Grantham University BA560 Business Ethics Dr. Janice Spangenburg March 19‚ 2013 The Corporate CultureLegal Case: Adelphia Case: Feds drop fraud case against Adelphia founder‚ son A six-year legal battle involving the jailed father-son duo who headed now-defunct Adelphia Communications has ended after prosecutors withdrew tax fraud charges related to their earlier conviction in a $1.9 billion fraud case. Prosecutors said they withdrew the tax-related
Premium Law Ethics Tax
fast-moving organization. 2. Research on one financial scandal - The Adelphia Communications Corporation was marked as the fifth largest cable company in the United States before it filed for bankruptcy in April of 2002. Founded by John Rigas‚ Three Rigas family members (incuding John Rigas) and two other ex-executives have been arrested for fraud. The Rigas family collected $3.1 billion in off-balance-sheet loans backed by Adelphia and overstated the results by inflating capital expenses and hiding
Premium Coca-Cola Diet Coke Sprite
The Adelphia Scandal In 1952‚ John Rigas purchased his own cable company. By the late 1990’s‚ he had turned it into the sixth largest cable company in the United States with 5.6 million customers. The business was always run as a family style business which led to fraudulent acts among family members and upper level executives. The family has been accused of stealing $3.1 billion from Adelphia and is now facing criminal charges. Adelphia was forced to file chapter 11 bankruptcy and as of April
Premium Ethics Morality Business ethics
Adelphia Case Assignment Kirstie Fehrenbach BUS 101 AH 1. The owners are the primary stakeholders in this case. 2. I know that the owners are the primary stakeholders because the illegal inside dealings that the Rigas family was involved with negatively affected not only themselves‚ but also their other shareholders. The most obvious illustration of this blowback is the arrest of Rigas family members and the bevy of lawsuits brought up against them by other shareholders. Consequently‚ the
Premium Board of directors Fiduciary Corporate governance