Analysis Of The Book ' The Adelphia Debacle '

1418 Words Nov 1st, 2015 6 Pages
Aldo Toomepuu
1 November 2015
ACG 6936

The Adelphia Debacle

Some have been ensnared in the net of excessive debt.
The net of interest holds them fast, requiring them to sell their time and energies to meet the demands of creditors. They surrender their freedom, becoming slaves to their own extravagance.
~Joseph B. Wirthlin

Background
At first glance this appears to be to another post-Enron big corporation fraud scandal. It was one of the first big cases tried after Enron. However, there are significant differences from Enron and WorldCom scandals Unlike other corporate fraud cases involving executives, John Rigas never sold stock or received stock options (Lowenstein). Where Enron and WorldCom executives appeared to be doing their best to flee their sinking ships, the Rigas family made no such move.

John Rigas story starts out as fulfillment of the American dream, a true rags to riches story. Born to Greek immigrants,Rigas worked hard from a young age. During World War II he enlisted in the Army to serve his country. He went to school on GI bill, earned his degree and then returned to his hometown of Wellsville, PA. At the age of 28 he went into business for himself. He borrowed money from family and friends and bought a movie theater. In 1952 he founded Adelphia Communications which he built up over the next 50 years to establish it as one of the oldest and largest cable communications companies in the United States.

Fraud scheme and modus operandi…
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