On or about May 16,he resigned pursuant to a request by the Special Committee. Mulcahey, director of internal reporting, who has been suspended. Mulcahey, in one of the most extensive financial frauds ever to take place at a public company.
Deloitte determined that it was unable to complete its audit procedures at Adelphia for the year ended December 31, in order for Adelphia fraud to timely file its Form K for the year ended December 31, ; and e.
Each of these represent key "metrics" by which Wall Street evaluates cable companies. The SEC is seeking disgorgement of potentially hundreds of millions of dollars, including "all ill-gotten gains including -- as to the individuals -- all compensation received during the fraud, all property unlawfully taken from Adelphia through undisclosed related-party transactions, and any severance payments related to their resignations.
June 25, -- Adelphia files for bankruptcy. Wire fraud Counts 8 and 9: Rigas, directly or indirectly, singly or in concert, has engaged in acts, practices and courses of business that constitute violations of Section 17 a of the Securities Act, 15 U.
John and Tim will likely pay for the rest of their lives, having been sentenced to 15 and 20 years, respectively.
A summary of one of the biggest scandals in US history. Fleming said only, "a jury is going to decide who is right and who is wrong. That alone should have triggered big red flags for institutional investors. Adelphia filed for bankruptcy protection under Chapter 11 of the U.
Unless the Defendants are permanently restrained and enjoined by this Court, they will again engage in the acts, practices, and courses of business set forth in this Complaint and in acts, practices, and courses of business of similar type and object.
In one case, Adelphia orchestrated a deal with two suppliers of digital set-top boxes -- Scientific-Atlanta Inc.
Conspiracy to commit securities fraud, wire fraud and bank fraud Count 2: Mulcahey is 45 years old and resides in Port Allegany, Pennsylvania. Mulcahey directed Adelphia employees to create false receipts showing payment by the family for the stock, according to the complaint.
April 4, -- Adelphia announces it has hired three investment banks as Adelphia fraud advisers to explore possible cable asset sales and other ways to reduce debt. Federal prosecutors chose to arrest and handcuff year-old John J.
In its complaint, the Commission charges that Adelphia, at the direction of the individual defendants: By virtue of the conduct alleged in this Complaint: The effective date of the Adelphia Plan of Reorganization occurred on February 13, Rigas is 77 years old and resides in Coudersport, Pennsylvania.
April 2, -- The first in a flurry of shareholder lawsuits accuses Adelphia of misleading stockholders by failing to disclose the off-balance-sheet debt, and alleges that a drop in the stock price was "in response to these negative announcements.
The SEC launched a formal probe three and a half months ago and two grand juries -- one in New York and one in Pennsylvania -- also began investigating. Failure to record this debt violated GAAP requirements and laid the foundation for a series of misrepresentations about those liabilities by Adelphia and the defendants, including the creation of: He noted that Mr.
Write to Jerry Markon at jerry.
Empire Sports limped along untilwhen it was finally shut down; its sports rights were split between MSG which acquired the Sabres television rights and Time Warner Cable Sports which acquired most of the Adelphia fraud and shut down in In addition, between October and JanuaryAdelphia undertook four public offerings of its Class A securities on October 6,January 23,November 15,and January 22, But nobody paid attention to red flags during the tech bubble.
Today, it is known as Nissan Stadium. As investors and ratings agencies demanded the company reduce its debt, the Rigases embarked on a series of escalating financial frauds to conceal the borrowings and inflate earnings -- even as the family withdrew increasingly vast sums for personal use, according to the complaint.Adelphia's description of the possible results of Deloitte's review was entirely false because the misrepresentations about co-borrowing liabilities were just one aspect of the fraud perpetrated by Adelphia and its management, as set forth above.
Aug 23, · The end of the Adelphia saga. The Adelphia Communications saga finally comes to a close as John and Tim Rigas go to prison. A summary of one of the biggest scandals in US history. by. Former Adelphia assistant treasurer Michael Mulcahey was found not guilty of conspiracy and securities fraud.
John Rigas, 79, and Timothy Rigas, 47, each faces 30 years in prison on the most serious charge, bank fraud.
The Director of the SEC's Northeast Regional Office Wayne M. Carlin said: "In this case, Adelphia not only failed early on to cooperate with the Commission's investigation, but actually allowed the fraud to continue until the Rigas.
Jul 09, · The two bank fraud counts focused on whether the defendants lied to Adelphia's lenders about company's revenue to obtain lower interest rates. During deliberations, the jurors requested both exhibits and transcript pages by specific number, but never asked a legal question.
Adelphia founder John Rigas and two of his sons were arrested and charged with looting the cable-television company. Two other executives were also arrested.Download