Adelphia Communications Scandal Revealed Essay

782 Words May 29th, 2011 4 Pages
ADELPHIA COMMUNICATIONS SCANDAL REVEALED
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The Adelphia Communications Scandal Created Controversy. The Fraudster Got Sympathy From the Judge and Received a Light Sentence for Stealing From Old Folks.
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The Adelphia Communications scandal broke in 2002 when a footnote in a routine quarterly earnings statement revealed that the Rigas family had borrowed more than $2 billion from the company. But they didn't pay it back.
Warning bells started ringing because of the huge amount of cash involved and because of a reference to a peculiar arrangement with Adelphia that made the family and the company responsible for each other's debts.
Ultimately it was revealed
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Despite its audacity, the Adelphia Communications scandal was never rated as a major scandal in U.S. terms, despite the vast amount of wealth involved. The Adelphia Communications scandal broke after the one at Enron, and it was also not as 'impressive' as the WorldCom and Tyco financial scandals.
It did not have glamorous high-flying players, merely an old Greek guy and his son. The only time the Adelphia Communications scandal really captured public attention was when the image of John Rigas being paraded in handcuffs when he was arrested became a symbol of the corporate frauds that cost investors billions in savings.
President George W. Bush even made political capital out of the image, issuing a statement calling the arrest a sign that the government would investigate, arrest and prosecute corporate executives who break the law.
HEAR JOHN RIGAS SPEAK
What sort of guy is this John Rigas? The public never really got to meet the soft-spoken, modest little pop-eyed 82-year-old crook, but if they had watched the Charlie Rose Show which was broadcast just before father and son reported for prison, they would have understood something really important: you cannot judge from appearances.
THE CASE PROSECUTOR
The prosecutor in the case stated his view clearly after the verdict and sentence were pronounced. He was accurate. It was a case of betrayal, he said, "betrayal of CEO's who betrayed the shareholders."
The Rigas family consciously…

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