This post is part of a feature in which he wonder whatever happened to some notorious financial felons. See all 17.
John Rigas used Adelphia, which at one time was the fifth largest broadcasting and cable TV company, as his personal piggy bank, ultimately driving the company into bankruptcy. He founded the company with his son, Timothy Rigas, who was also charged in the scheme. The Rigases stole $100 million from the company so they could buy luxurious personal residences, trips, and other items to enable them to live a life of luxury on the purse strings of the shareholders.
In 2004, John and Timothy Rigas were found guilty of concealing $2.3 billion in loans, which were hidden in small companies left off Adelphia's books. The SEC charged them with hiding that debt and inflating Adelphia's earnings to meet Wall Street expectations between 1998 and 2002. They also were charged with falsifying company statistics and concealing blatant self-dealing with members of the Rigas family, which had a controlling interest in Adelphia. In 2005, John Rigas was sentenced to 15 years in prison and Timothy Rigas was sentenced to 20 years. At the time of the sentencing John Rigas was 80 years old and Timothy Rigas was 49 years old.
In August 2007, John and Timothy Rigas finally were ordered to report to prison when their appeals were exhausted. John Rigas is hard of hearing, has a weak eye, and has bladder cancer (that was in remission at the time he entered federal prison). The judge who sentenced John Rigas said he could be released after two years if a prison doctor determines he has less than three months to live.
Adelphia went bankrupt and was put up for sale in 2004. Time Warner Cable (NYSE: TWC) bought a majority of Adelphia's revenue-generating assets in 2006.
Lita Epstein has written more than 25 books including Trading for Dummies and Reading Financial Reports for Dummies.
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Reader Comments (Page 1 of 1)
11-21-2008 @ 8:23AM
Gerbil jockey said...
Used to sit next to John at hockey games at HSBC arena. Guess what, he knew what was going on, but allowed the kids to run the whole illegal show.
11-23-2008 @ 11:53AM
Marc said...
I wish I actually lived in a society where the concept of responsibility and consequences were not a hollow threat only directed towards the weakest and most vulnerable classes.
There is such debate about the death penalty. It has been proven without a sane doubt that the death penalty only deters when the act intended to deter is premeditated, i.e. white collar high crimes. Institute the swift death penalty for high echelon white collar crime and negligent irresponsibility and all our problems will be solved. The problem lies in that, as much as this pathetic society rants about consequences and responsibility to those lower, uneducated classes who don't know any better, are pushed into things or prevented from coming out of them, there is no consequence for recklessness and heinous irresponsibility of those who affect millions of people's lives.
Can someone be held responsible and accountable please.... other than some disenfranchised person trying to get some simple pleasure out of life by smoking a little weed?
20 and 15 years? ha.... i would like to see if they are in general population where low level drug offenders are stashed with murderers, gang-bangers, and non-gay but pirates. How about an investigation on where all these financial felons are housed and how they live their lives... I have a feeling that they are quite comfortable. Paying their lawyers with the ill gotten gains to get them a nice stay and their family living it up for generations.
12-05-2008 @ 1:46PM
Jim Connor said...
I cannot see the benefit to society of keeping John Rigas in prison. What does society gain and what danger to society is John Rigas. How could a man who started with nothing and built a multi BILLION dollar empire get a fair trial.
He was convicted when jury was preached to about the Christmas tree flying on corporate jet. Hell, how much would it have cost the corporation if John had gotten in his car and driven it to New York City. His time was pretty valuable then.
Let John spend the remaining years of his life with his wife. Jim Connor
12-20-2008 @ 7:27AM
Brian said...
If indeed the rigas men were conscious of their alleged looting, then the point has been made. Further incarceration seems cruel, and I say enough; let these men out of prison, to live with their families. Financial amends that leave John and his son broke are all the burden these two men should endure, moving forward. Enough