Learning Am

In: Business and Management

Submitted By ying2angie
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7/1/2015

Adelphia founder sentenced to 15 years in jail ­ Business ­ Corporate scandals | NBC News

Adelphia founder gets 15­year term; son gets 20

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Rigases were convicted of stealing $100 million in company funds

updated 6/20/2005 7:04:56 PM ET

NEW YORK — John Rigas, who turned a $300 investment a half­ century ago into cable behemoth Adelphia Communications Corp., was sentenced to 15 years in prison Monday for his role in the looting and debt­hiding scandal that pummeled the company into bankruptcy.
Rigas’ son Timothy, 49, who like his father was convicted last year of bank fraud, securities fraud and conspiracy, was sentenced to 20 years in prison. Sand could have sentenced both men to life.
The sentences are among the harshest handed down in any U.S. court since the fall of Enron in 2001 touched off a rash of corporate scandals that rocked the markets and have cost investors billions of dollars.
Raising the possibility that the frail, 80­year­old Rigas could die behind bars, U.S. District Judge Leonard Sand said the sentence might be cut

Former Adelphia Communications CEO John Rigas, 80, enters Manhattan federal court for his sentencing M stealing millions of dollars from the cable company and deceiving investors by hiding its crushing debt.

short if Rigas serves at least two years and prison doctors believe he has less than three months to live.
“This is a tragedy lacking in heroes,” the judge said.
Adelphia prosecutors had accused the Rigases of using complicated cash­management systems to spread money around to various family­owned entities and as a cover for stealing about $100 million for themselves.
They were accused of spending the money on a lengthy list of personal luxuries. Prosecutors said John Rigas had ordered two Christmas…...

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