Adelphia: Lying, Cheating, and Stealing Essays

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Lying, Cheating and Stealing Lying, Cheating and Stealing

White collar crime is not a victimless crime. People’s lives can be ruined through the loss of a job, loss of savings and loss of assets. It is hard to not hear about white collar crime when looking at news. While not a justification for illegal actions, pressure is very high for companies to perform well and show growth. This pressure can lead people to commit crimes to falsify results or to enrich themselves. Laws and regulation, such as Sarbanes-Oxley have been implemented to provide greater transparency and accountability. However, the crime has become more sophisticated and complex. Many examples of such crimes involve greed and feelings of entitlement. One such
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In 2001, the SEC audited the company's financial statements and found that enormous loan to John Rigas. When investors found out about the massive loan, the price of Adelphia stock sank from its high of $68 in 1999 to just 25 cents a share. Investors were crushed. Adelphia was forced to declare bankruptcy. Rigas and his sons were indicted for one of the worst financial frauds committed at a public company in history.
During the trial, the defense claimed that Rigas had only borrowed the money and the fact that he never sold stock was evidence of his ‘honest intentions.’ Rigas' attorney claimed the entire case was built on a scheme by Adelphia employees to blame the company's problems on the family. The Rigas’ seemed to treat the business like a personal bank account and acting entitled to the assets. This behavior seems fairly consistent with white collar crime; feeling and acting entitled.
Prosecutors presented hundreds of documents to prove that Rigas and his son issued themselves $1.6 billion in stock. The men also charged $100 million in personal items to the company; John Rigas paid for 17 cars with company funds and was accused of taking a million dollars every month.
In 2005, they returned more than $1.5 billion in assets to Adelphia. In turn, the failing company set up a $715 million fund for the investors who lost out in the scam. That same year, Time Warner Corp. and Comcast Corp. made a

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