Q:

What happened in the Adelphia Scandal?

A:

Quick Answer

In the Adelphia scandal, three founders of family-owned Adelphia Communications Corp. and two of the company's high-level executives were accused of fraud, conspiracy and theft on a massive scale. This was one in a series of similar fraud cases of 2002. Various entities launched investigations into Adelphia's criminal and financial misconduct, which alleged a massive cover-up to hide the company's increasing, exorbitant debt and rampant personal spending of company funds.

 Know More

Full Answer

In an effort to compete with larger cable companies, such as Comcast, Adelphia began buying up new acquisitions in 1999, which grew the company's debt from $3.5 billion to $12.6 billion. Rating agencies and shareholders demanded that Adelphia reduce this massive debt load. In response, the company began to "cook the books" by doctoring their financial records and creating fraudulent transactions and fake companies to inflate their earnings and conceal their enormous debt. By 2001, this fraudulent record-keeping attempted to cover up $250 million of debt. Adelphia filed bankruptcy in June of 2002. Timothy and John Rigas were eventually found guilty of bank fraud, conspiracy and securities fraud and received lengthy prison sentences. CEO Michael Rigas was acquitted of wire fraud and conspiracy but later pled guilty to reduced securities fraud charges and received home detention.

Learn more about Crime

Related Questions

  • Q:

    What are types of inchoate crimes?

    A:

    Inchoate crimes involve taking steps toward directly or indirectly participating in a crime, including solicitation, conspiracy or the attempt to commit a crime. Other types of inchoate crimes include being an accomplice or accessory to a crime.

    Full Answer >
    Filed Under:
  • Q:

    Why was Jose Rizal exiled in Dapitan?

    A:

    Due to his association with the members of Katipunan, Jose Rizal was implicated as one of its founders and was tried for sedition, rebellion and conspiracy before a military court. Rizal was already in the Mediterranean when he was arrested en route and brought back to Manila for trial. He was convicted as guilty of all three charges. He was sentenced to death and was exiled to Dapitan in 1893.

    Full Answer >
    Filed Under:
  • Q:

    What is the penalty for stealing mail?

    A:

    A person convicted of mail theft faces a fine of up to $250,000 and up to five years in federal prison. Stealing mail is a felony offense in the United States.

    Full Answer >
    Filed Under:
  • Q:

    How many different types of stealing are there?

    A:

    Petty theft, robbery, embezzlement, knowing reception of stolen property, identity theft, burglary and intellectual property theft are seven common types of theft. Theft comprises any unlawful taking of another person’s property without his permission.

    Full Answer >
    Filed Under:

Explore