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Adelphia, Rigas Family Pay $715 Million to Settle SEC Fraud Case

Authored by Mark Hefflinger on April 26, 2005 - 7:13am.
Washington -- The U.S. Securities and Exchange Commission (SEC) announced that it and the U.S. Attorney's Office for the Southern District of New York have settled their civil action and criminal charges against the executives at bankrupt cable operator Adelphia, who will pay $715 million in compensation. The SEC called the fraud scandal involving Adelphia's founding Rigas family "one of the most extensive financial frauds ever to take place at a public company." Adelphia founder John J. Rigas and his three sons, Timothy, Michael and James, will also forfeit $1.5 billion in assets derived from the fraud, including their interests in certain cable properties. Adelphia, the nation's sixth-largest cable TV company, filed for bankruptcy in June 2002; last week, the company accepted a $17.6 billion buyout offer from Comcast, the nation's largest cable company, and partner Time Warner.
tags: Law | Adelphia | Rigas Family | SEC Fraud Case |