John Rigas Essay

1640 Words Apr 25th, 2013 7 Pages
There are many different types of fraud one can commit. Banking, security, and wire fraud are just a few different types. Any type of fraud a person commits is very serious and is usually punished to the full extent of the law. In a large company or corporation, fraudulent acts are usually premeditated and happen over long periods of time. It can start with anyone stealing a few dollars taken here and there and then it can evolve into intricate plans which can defraud the companies millions, even billions of dollars. This is something that happened with the Adelphia Communications Corp. in the early 2000's. John Rigas, founder and former CEO of Adelphia, and his two sons, Timothy and Michael Rigas, along with the former assistant …show more content…
After that, Rigas took Adelphia to the public. "In 1999, he paid $8.5 billion for Century Communications, Frontier Vision Partners and Harron Communications. That nearly doubles Adelphia's size, making it the No. 6 cable operator at the time, and adds greatly to its debt". (Adelphia Timeline) The Rigases abused their company and because they only conducted business activities to benefit themselves in the most selfish way possible, Adelphia filed a law-suit seeking more than one billion dollars against the entire family. The Rigas family directed employees to compose false financial reports and receipts. The family took unapproved trips with the company's private jet on more than one occasion. John Rigas withdrew so much money that at one point it was so out of control that his son Timothy had to restrict him to only taking one million dollars a month, which he did, consistently, every month. He became $66 million in personal debt. (Adelphia Officials) A very well know local sports team was deeply affected by the collapse of Adelphia Cable, the Buffalo Sabres hockey team. In 1994, the Rigases bought the NHL hockey team for $22 million (Adelphia Timeline), John and his three sons each owned 25 percent of the team. John, Timothy, and Michael borrowed more than two million dollars from Adelphia and $150 million of that went to the buying and operation of HSBC Arena and the team itself (Hockey). Owning the Sabres was just a hobby

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