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
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Trident University Case 1- The Adelphia Scandal ETH501: Business Ethics Dr. Bonnie Adams 4/13/2014 Introduction Aldelphia Communications Corporation was founded in 1952 by John Rigas and two partners. Rigas began to grow the business and by July 1‚ 1986 Adelphia was ready to go public. The company quickly grew into the sixth largest cable company in the United States. Its annual revenue exceeded $2.9 billion with offices located in 32 states and Puerto Rico (Barlup‚ Hanne & Stuart‚ 2009). With
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Inside Look of How Fraud‚ Embezzlement‚ Cybercrime‚ Identity Theft and Forgery Are Increasing World-Wide In this paper I will examine some of the aspects of white collar crimes such as: fraud‚ embezzlement‚ cybercrimes‚ identity theft and forgery. I will explain what each of these are pertaining to criminal justice and how they relate to one another. And I will conclude by how each of these topics are growing into global problems. According to Criminal-Law-Lawyer-Source.com “Fraud is the act of deliberately
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Introduction In 1952‚ John Rigas founded Adelphia Communications Corporation with a $300 license‚ took the company public in 1986‚ and built it up by acquiring other systems in the 1990s. In March 2002 Founder‚ chairman‚ and CEO of Adelphia Communications Corporation 78 year old John Rigas‚ his two sons‚ and other Adelphia executives were arrested and charged with looting the nation’s sixth largest cable company on a massive scale. Adelphia Communication Corporation whose revenue exceeded $2.9 billion
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------------------------------------------------- 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
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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
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THE NATION’S NEWSPAPER BS2003-01b Collegiate Case Study Adelphia founder‚ 2 sons‚ 2 others arrested in fraud By David Lieberman and Greg Farrell www.usatodaycollege.com Accounting fraud Part II: The results “Creative accounting” is not a new technique‚ but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources‚ but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called
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cases like Enron came to light. For someone interested in the Forensic Accountant profession they should know that this field can be time consuming‚ but very rewarding. People who work in this career investigate white collar crimes such as company fraud‚ fraudulent financial record reporting‚ and illegal investment schemes. In a recent study by the Federal Bureau of Investigation shows that white collar crimes have cost the United States and estimated 300 billion dollars (DiGabriele 2008). I
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“White collar crime is defined as various crimes‚ as embezzlement‚ fraud‚ or stealing office equipment‚ committed by business or professional people while working. Generally the person accused of a white collar crime is someone of high prestige. White-collar crime is a broad term that encompasses many types of nonviolent criminal offenses involving fraud and illegal financial transactions. White-collar crimes include bank fraud‚ bribery‚ blackmail‚ counterfeiting‚ embezzlement‚ forgery‚ insider
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Group Inc. is a full service investment bank and security firm. Rajat Gupta was found guilty of leaking inside information to the outside‚ and was sentenced to two years in prison‚ and some pretty hefty fines. Rajat Gupta was not the average fraud perpetrator he was total opposite at least from the articles description of him. The article states‚ “Mr. Gupta’s was a classic American success story. He grew up in New Delhi‚ excelling academically despite the death of both of his parents when
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