Read the following articles or other related articles regarding the Adelphia case and then answer the questions below:
Securities and Exchange Commission, Litigation Release No. 17627 and Accounting and Auditing Enforcement Release No. 1599, July 24, 2002.
McClam, Erin, “Adelphia Founder Sentenced to 15 Years,” Associated Press/Yahoo! News, June 20, 2005.
Short Answer Questions
- Why was Adelphia cable company formed?
- In what year was the original company formed?
- In what year did Adelphia go public?
- How many Rigas-related parties were in executive leadership roles at Adelphia?
- In what month and year did Adelphia file for bankruptcy?
- For how many years was John Rigas sentenced to prison?
- In addition to financial reporting fraud, what other types of asset misappropriation schemes were perpetrated by the Rigas family members?
- Discuss why collusive frauds, especially when perpetrated among related parties, is particularly difficult to detect?
- List five symptoms of fraud that Adelphia exhibited and explain the reasoning for your choices?