US Corporate Crackdown Begins with Arrest of `Looting' Adelphia Founder
Cornwell, Rupert, The Independent (London, England)
FIVE FORMER directors of Adelphia, including its founder and former chief executive John Rigas and two of his sons, were arrested and charged with looting the US cable company of over $1bn (pounds 635m) and driving it into bankruptcy.
In a 68-page indictment after an investigation by the Securities and Exchange Commission (SEC), Rigas and his family were accused of using Adelphia as their "personal piggy bank". The SEC said the affair was "one of the most extensive financial frauds" at a public company.
Mr Rigas and his colleagues are said to have concealed $2.3bn in debt, and used company money to buy shares, a luxury condominium and build a golf course. …
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Publication information: Article title: US Corporate Crackdown Begins with Arrest of `Looting' Adelphia Founder. Contributors: Cornwell, Rupert - Author. Newspaper title: The Independent (London, England). Publication date: July 25, 2002. Page number: 19. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.
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