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
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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
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Adelphia Case Summary The Allegations: Prosecutors say members of the cable company’s founding family and two former executives looted the firm "on a massive scale‚" spending company funds on personal expenses‚ such as a $12.8 million golf course. The firm has been accused of hiding business relationships between Adelphia and entities tied to the founders and for inflating its financial results. Who’s Who: • John J. Rigas‚ Adelphia’s founder • Timothy Rigas‚ former CFO • Michael Rigas‚
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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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this case study we are asked to draw upon deontological ethics‚ and discuss how Adelphia Communications’ executives violated the trust of the company’s shareholders and the trust of that of the larger public. To do this we first need to take a look at deontological ethics and how the philosophy of deontological ethics affects the choices that were made in the Adelphia Communications’ case. We will also look at the Adelphia case and examine how its executives violated the trust of the company’s shareholders
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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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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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18(2)‚ 77-79. Fusaro‚ P. C.‚ & Miller‚ R. M. (2002). What Went Wrong at Enron : Everyone ’s Guide to the Largest Bankruptcy in U.S. History. J. Wiley. Leonard‚ D.‚ Harrington‚ A.‚ Burke‚ D.‚ Rigas‚ M.‚ Rigas‚ T.‚ & Cohen‚ O. (2002). The Adelphia story. Fortune‚ 146(3)‚ 136-148.
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