Sunday, June 19, 2005

Founder and CFO of Adelphia Given Jail Sentences

John Rigas, the founder of Adelphia Communications, was sentenced to 15 years in federal prison for fraud. Timothy Rigas, his son, who served as Adeplhia's CFO, was sentenced to 20 years. The father is 80, while the son is 49.

Adelphia, which ranks as the fifth largest MSO in the U.S., serves approximately 5.2 million basic subscribers in 31 states, including in the Los Angeles area, where it is the largest cable operator.

  • In April 2005, Time Warner and Comcast finalized a deal to acquire Adelphia Communications for $12.7 billion in cash and 16 percent of the common stock of Time Warner's cable subsidiary, Time Warner Cable Inc. The transaction is subject to approval by the U.S. Bankruptcy Court.

  • In May 2002, following allegations of financial wrong-doing, founder and CEO John Rigas and CFO Timothy Rigas resigned from the company and its Board of Directors. They were subsequently indicted. Adelphia filed for bankruptcy protection the following month.

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