Adelphia Case Flashcards
What happened to Adelphia in 1980?
John Rigas bought his brother’s shares of the company and brought his sons into the business
What happened to Adelphia in 2002?
They went bankrupt
Why did Adelphia go bankrupt?
Internal corruption
How was there internal corruption at Adelphia?
The Rigas family had a lot of connections to Adelphia
Was the community shocked by the John Rigas internal corruption?
Yes because he gave back to the community
Give an example of the Rigas family’s connections to Adelphia
Adelphia purchased furniture from Rigas furniture store
What happened to John and Timothy Rigas?
They were convicted of bank fraud, securities fraud and conspiracy
What happened to Michael Rigas?
He was acquitted of his charges
Who was Timothy Werth?
He was Adelphia’s director of accounting
What did Timothy Werth plead guilty to?
Earnings management
What type of case is the Adelphia case?
Earnings management
How was Adelphia engaging in earnings management?
They were falsifying their earnings
