Rigas Trio Could Face Tax Claims

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Disgraced Adelphia Communications Corp. founder John Rigas and sons Timothy
and Michael may be facing federal tax evasion charges along with conspiracy,
bank fraud and wire fraud charges, according to published reports.

According to a report in The Wall Street Journal last week, federal
prosecutors in Pennsylvania were putting together the tax-evasion case.

It appeared likely that tax charges would not be levied against the three
executives until after the federal government gets convictions on the other
charges against the Rigases.

That may take a while.

Although grand juries in New York and Pennsylvania have been investigating
Adelphia and the Rigases since June, no formal indictments have been handed down
yet.

Also last week, reports said federal investigators examining Adelphia's
transactions with set-top vendors Motorola Inc. and Scientific-Atlanta Inc.
because of possible self-dealing arrangements with the Rigases.

The set-top deals were revealed earlier in SEC documents filed by Adelphia,
accusing the Rigases of using 'marketing support' fees charged to the vendors to
inflate cash flow.

Both Motorola and S-A have said in the past that they have properly accounted
for their transactions with Adelphia.

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