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Adelphia founders under arrest.

1528 Views 18 Replies 11 Participants Last post by  Ontarian
John Rigas and two sons arrested this morning by postal inspectors for consperacy to commit securities fraud.
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What was that for -- distributing fake cable services? I'm sitting in a lonely hotel room right now watching Adelphia as I write this. It's all I have, fer crissake! Are they going to pull the plug before I can check out?? :eek:

I want my DBS!!!!! Waaah! :crying: --> :bang:

Nickster :smoking:

"Cable sucks -- hotel cable sucks more"
I didn't know they had hotels in Nevele. :D
Adelphia is the reason I subscribed to E* in the first place. Cox cable dominates San Diego County, but the community complex I live in has an exclusive contract with Adelphia. Man their service was B A D bad!!! Not to mention their PQ and audio!!! :rant:

Despite posted "shortcomings" on the part of E*, I will always be grateful for the option to get out from under their monopolized system. Thanks, Charlie!!!! :welcome: :righton:
"I didn't know they had hotels in Nevele."

Right next to the Wal*Mart! :D
... where they sell dish network, right.....
Hey Sam,

I am betting you live right down the street from me. The complex O' dishes. VWV. I have personally installed about 20 systems in that complex and heard some of the worst customer service stories EVER from the residents regarding adelphia.

Be thankful you have a choice.
.......You never know...........:cool: I can tell you this, I stopped getting offers to sign up with them a while ago, they must have seen the dish on my roof. :righton:
The Buffalo area was overjoyed today as WIVB-TV and WEDG-FM broke the news. Rumor has it Rigas took $3 million in Sabres money and used it to help subsidze his daughters independent flim (Dreamcatcher), that went nowhare. They were arrested in NYC, at the daughters appartment at around 7:30-8:00 this morning. If I was home at the time I would have made some popcorn and watched the b*stards as they go bye bye in handcuffs. :)
Originally posted by Sam1980

Despite posted "shortcomings" on the part of E*, I will always be grateful for the option to get out from under their monopolized system. Thanks, Charlie!!!! :welcome: :righton:
Opinion mode on:

Let's hope that the two DBS platforms will remain separate so that the monopolies will no longer take over my tv.

Opinion mode off.
So, I have a bout of insomnia.... I just happened to watch the closing comments of Traficant, and right afterwards, C-SPAN replayed the press briefing by the Justice Department on the arrests of former Adelphia Communications Officials.

The general gist can be found on many wire services, so I will not repeat them here.

Connents from Larry Thompson-Deputy Attorney General:
* Task force is committed to finding and rooting out corporate fraud. Seeks to find out the "bad actors" and put them behind bars.
* Adelphia is the 6th largest cable operator and largest issuer of junk bonds.
* Bankruptcy filing was the 5th largest in US history.
* Complaint alleges that the Rigas family which controlled Adelphia systemmatically looted Adelphia over a four year period, and cost investors of 60 billion dollars.
* The defendants intentionally made submitted false information to lenders and made false statements to the public to keep the stock price up.
* Adelphia had grown in the past decade through an aggresive acquisition strategy.
* In 1999, the defendants caused Adelphia to borrow more than $2.28 billion which it then conceiled from the public by omitting it from the SEC filings.
* The complaint also alledges that the defendants fraudulently reported the company's operating results by creating millions of dollars in fake management fees, entering into sham transactions with other companies, and outright falsifying the number of cable and internet subscribers.
* The complaint also alledges that the defendants repeatedly submitted false information to the lending banks on the company's financial performance.
* In addition, the defendents victimized shareholders through a series of "quite brazen" thefts. Examples include:
- The defendants used Adelphia money to pay out $252 million to satisfy margin calls by the Rigas family brokerage accounts.
- The defendants used fraudulent documents and misleading accounting tricks to obtain more than $420 million of Adelphia stock for the Rigas family without paying a dime and lied to the independent directors that they were paying cash for the stock.
- Defendant CEO John Regas lent himself more than $66 million of company funds without making required disclosures.
- The defendents caused Adelphia to spend $13 million on building a golf course on defendant CEO John Regas land. (A later question revealed that this golf course isn't completed yet!)
- The defendants forced Adelphia to pay for airplanes and luxury apartments for the personal use of the Regas family members unrealted to Adelphia business.
* This investigation is one of many that the task force is workong on since it's formation two weeks ago.
* Thanks to several members of the task force.
* A member of the postal service has been appointed to this task force.

Comments from Steve Cutler-SEC Director of Enforcement:
* Benefits of cooperation between agencies.
* The charges against Adelphia was brought about in 3-1/2 months.
* Adelphia fraudulently understated it's liabilities by $2.3 billion.
* After the March 27th revelation, Adelphia misrepresented the scope and effect of the off-balance sheet loans.
* The defendents caused Adelphia to pay off $174 million of the Regas's margin calls after March 27th, 2002.
* The relief that the task force is seeking is as follows:
- An order that the defendents account for and discorge (?) all ill-gotten gains and pre-judgement interest.
- This includes all compensation received during the period of the fraud, all property unlawfully taken from Adelphia thaken through unreleated related party transactions, and all severence payments related to the resignation from the company.
- Because of the egregress misconduct from the directors, the task force is seening action barring the directors from holding board of directors positions.
- Civil penalties are also being sought against Adelphia and it's directors. While a civil penalty is usually not saught because it hurts the shareholders more than anyone else, it is necessary because of the violations made by Adelphia and to set an example.
* The investigation is continuing.
* More thanks.

Q. (barely heard) What is the maximum penality?
A. James Comey-US Attorney: The charges in the complaint consist of a total maximum of 100 years in prison. Forfeiture is also important in a case like this.

Q. Bail?
A. Comey: They are seeking the freezing of all assets so that if the defendents are released on bail, they will remain for trial.

* Most of the questions were answered with the stock "the investigation" is continuing because there were so many players involved. A question was raised on government oversight, and there was no good answer.
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Originally posted by Nick
"Cable sucks -- hotel cable sucks more"
Hospital Cable Sucks even worse. Stuck there the past week, Locals only + CNN-HN. :(
Hospital Cable Sucks even worse.
This is designed to expedite recovery and get you out of the room. :D Nothing serious I hope.

Thanks for the detailed info; man, were those guys crooks, or what!!! Are they the exception, or the rule?? I guess we'll fnd out soon enough. I really hope this time the penalty for their crime is fair, unlike the S&L penalties back in the 80s. :rant:
Get well soon, gcutler. Last August I had my appendix out. I couldn't agree more about hospital cable. Bad PQ too.

It sounds like they used Adelphia like it was their own personal piggy bank. Heard on the radio that the family startrd the company in the '50s and went public in early '80s. Guess they didn't realize other people owned the company with them and couldn't spend like they wanted. :rolleyes:
Sorry to hear the news gcutler, I hope you start feeling better soon!!!!!!! :)
Well out of there and at home now. With nothing to do but sleep or watch tv, the lack of channels became annoying rather quickly. I'm a CNN addict so any 24 hour news channel would have been good, but CNN-Headline News wears down quickly.

I hit bottom when there was nothing to watch but "Mama's Family". Only lower point was "Lemon Pudding" for desert, talk about the worst tasting pudding on the planet.

I may sneak in on Bob H's health postings :D
I heard this on the radio this morning. The Buffalo Sabres radio broadcast used to be on our oldies station, meanwhile our rock station, who are both owned by the same company, has been promoting E* and a regional retailer, Intertech, for the past 5-6 years. Timmy Rigas, one of the sons that was arrested yesterday, got pissed about that and contacted the station managers of both radio stations, this helped lead to Adelphia buying out a differenct radio station and putting the Sabres broadcast on there.

I thought it was pretty funny that Timmy, gives his dad a $1 Million allowence for the month, and if John needs anymore, he has to ask for it. A million, a month geeze he must have had it rough :rolleyes: Also back in 2000, Tim took the private Adelphia jet, down to Africa for a month, on his Lion Safari vacation. Also pretty cool Adelphia is slapping their founder with a civil suite.
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It all boils down to just plain greed! If they are found guilty, I hope they get what they deserve.
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