Adelphia Communications Accounting Scandal
In spring of 2002 Adelphia Communications reported $2.3 billion in off- balance sheet liabilities. The owner John Rigas and his two sons Timothy and Michael are said to have deliberately hid the problems. The family was borrowing/ stealing the money to buy themselves extravagant things such a 6,000 Christmas trees, expensive company cars and luxury homes. The family was also in the process of building their own golf course. This caused the company to fall into chapter 11 bankruptcy.
The Rigas were accused of stealing more than $100 million dollars for their lavish lifestyles. John Rigas 80 was sentenced to 15 years in prison and his son Timothy was sentenced to 20 years in prison. Universalism
The Rigas family had no values when it came to the following universalism. They thought they could just take money when then they wanted and nothing would happen to them. But in the back of their minds they must have thought something could happen to them because they tired to hide the fact that they stole over $100 million dollars from the company. Egoism
The Rigas family behaved in a way that would benefit them more then the good of the company. They didn’t everything opposite from doing the right thing for the good of the company. They felt that they could do whatever they wanted with the company funds. They were suppose to be helping improve the lives of the stockholders and the employees, but instead just cared mainly for themselves. http://ww.cfonet.com/article.cfm/3011051?f=search http://www.msnbe.msn.com/id/8291040
Please join StudyMode to read the full document