Federal prosecutors could be close to handing down criminal indictments for
the Rigas family, the largest shareholders and former officers of bankrupt
Adelphia Communications Corp., according to a report Monday in USA
According to the article, the indictments could be handed down as early as
this week, and they could include charges of mail, wire and bank fraud.
The article added that the Securities and Exchange Commission is expected to
file a civil lawsuit against the Rigases for falsifying the company's public
Federal prosecutors in New York and Pennsylvania have been investigating
Adelphia since March 27, when the Rigases revealed that they had $2.3 billion in
off-balance-sheet debt through family partnerships that the MSO could be liable
for. Since then, that figure has grown to about $3.1 billion.
Adelphia's top management -- chairman John Rigas and sons Tim (chief
financial officer), Michael (executive vice president of operations) and James
(executive VP of strategic planning) -- resigned in disgrace in May amid a
growing accounting scandal at Adelphia.
In public documents, Adelphia later revealed a list of self-dealing
arrangements the family made for its own benefit at the expense of the publicly
Adelphia filed for Chapter 11 bankruptcy protection June 25. The company is
now led by Erland Kailbourne, chairman and interim CEO, and a special committee
of independent directors.
Adelphia declined to comment, as did the U.S. Attorney's office for the
Southern District of New York.