John Rigas and his family are the centerpiece of the Adelphia scandal, which is regarded as one of the most elaborate and extensive accounting frauds in history. In 1952, the founder John Rigas purchased a cable company for three hundred dollars. Twenty years later, he created Adelphia Communications corporations and the company went public. With the help of his family, it eventually grew to be the nation’s 6th largest cable company. John’s sons Timothy, Michael, James and Peter all held executive positions in the company and were members of the board of directors. Timothy and Michael served as Adelphia’s CFO and COO, respectively. This gave the Rigases majority in both the voting stock and on the board. Adelphia was effectively controlled by the Rigas family. …show more content…
His family were often describes as down to earth people, yet the Rigas family lived a lavish lifestyle. Their riches allowed them to acquire “a professional hockey team, an African safari, the use of three private jets, and swanky vacation homes in hot spots like Cancun, Mexico” (Hudson). Other outlandish expenditures included the construction of a private golf course, the order of fresh Christmas trees to be flown to New York, and the purchase of parcels of land outside of their estate in order to keep their view. The Rigases were able to afford all of this by illegally tapping into corporate funds. By keeping Adelphia within the family’s control, they were able to use the corporation to issue the family personal loans. They also commingled the family’s money with Adelphia’s to fund non-corporate projects. The Rigases were able to acquire all of the aforementioned real estate property by using Adelphia’s funds, which were not the Rigases to spend. As a publicly traded company, the Rigases were essentially using the shareholders’
John Rigas started Adelphia Communcations in 1952 with the help of two partners, but soon bought it out. The company was taken public in 1986 and as a result would have to abide by the regulations of the SEC. By the early 2000s, Adelphia was one of the top cable companies in the United States. This was the peak of a corporation that would begin a downward spiral over the first half of 2002 as a result of fraudulent use of the company’s assets at its’ shareholders expense. Members of the Rigas family drove the company to bankruptcy through rampant spending of company funds on personal expenditures (Barlaup, 2009). These expenditures included the likes of gross misuse of the company’s aircraft for personal trips by members of the Rigas family and the construction of a personal golf course on the family’s private land (Markon, 2002). This was accomplished after careful manipulation of the company’s reported numbers and fabrication of transactions within the company. Co-borrowing and self-dealing were commonplace in this time period that resulted in over 2 billion dollars’ worth of debt. All this was done under the nose of shareholders and culminated in an insurmountable debt that would lead the company to bankruptcy and to the imprisonment of multiple members of the Rigas family (Barlaup, 2009).
“From Watergate we learned what generations before us have known; our Constitution works. And during Watergate years it was interpreted again so as to reaffirm that no one - absolutely no one - is above the law.” -Leon Jaworski, special prosecutor during the Watergate scandal.
From lies of profits to questionable dealings, such as concealing debts, the parties involved with running the company had made some fatal errors. The end result left Enron without creditors and investors, leading to the firm to file for Chapter 11 bankruptcy (British Broadcasting Corporation, Enron Scandal at a Glance). The story of this once remarkable company is one that can be traced from the decisions made from its inception, leading all the way to the much publicized trials that ensued. Enron Corporation was an American company that specialized in energy commodities and services, well known for its impressive rise and scandalous decline. The company was based in Houston, Texas and was formed in July 1985 as a result of Houston Natural Gas merging with InterNorth, an Omaha based company.
William Wells Brown wrote Clotel or The President's Daughter, a (fiction) novel based on the rumors surrounding Thomas Jefferson's affair with Sally Hemings, his slave. Brown learned of the scandal while working in several antislavery activities following his escape from slavery in 1834. Brown wanted not only to improve the social status of blacks and to support abolition through his writing, but also to encourage his readers to "develop a skeptical relationship to glorified stories of the national past" (Levine 15). He chose to write a novel that not only questioned slavery, but also questioned the validity of the principles that this nation was founded on.
The Scandal at Penn State, lead to the arrests of Jerry Sandusky a defensive coordinator for the University. A grand jury on November 4, 2011, stated that for 15 years Mr. Sandusky sexually abused eight young boys. During that time frame, the official at the university deliberately failed to notify law enforcement of these incidents. Within a matter of a month, the number of victims begins to increase up to a total of 10. Within a year, Mr. Sandusky was found guilty in 2012. During his career at Penn State, he establishes a group home for troubled boys, which eventually became a non-profit organization known as The Second Mile. His purpose was to inspire young trouble boys to tap into their potential and achieve (2017). He captured the trust
In the novel The Disreputable History of Frankie Landau-Banks, the salad bar prank was mean spirited and an embarrassing to the Alabaster. The salad bar prank was a prank planned by Frankie, but executed by the Basset Hounds, a secret all male society on campus. However, the Basset Hounds are under the impression their leader, Alpha, is planning the pranks, when in reality Frankie is. Before the salad bar prank, she was the mastermind behind the library lady prank, doggies in the window prank, and night of a thousand dogs prank. The salad bar prank consisted of convincing all of the students to support a healthy eating day, to raise awareness of their gross salad bar. ** The prank was mean spirited because in the process, they embarrassed an
The Watergate Scandal was one of the biggest and first scandals in United States History. Nixon’s political rivals were recorded and harassed. Nixon was a very paranoid man, and the Democratic National Committee was bugged at the Watergate Hotel, there were also bugs at the White House. Five burglars were caught doing so and it was later realized that Nixon was connected to the scandal. It was proved that Nixon had a very big role behind all of the issues around Watergate and he felt guilty enough to resign. One can say that the resignation of Richard Nixon can be credited to the pressures imposed on him by the congress, the press, and the courts.
The Sandusky scandal continued as Sandusky and the accused officials were charged for their involvement in the child abuse cover-up, which occurred at Penn State University. In 2012, Paterno, one of the accused officials, died at the age of 85. In 2017, Shultz and Curley pleaded guilty to a misdemeanor charge of endangering the welfare of children. As a result, the felony charges were dropped. Spainier was charged with failing to report an allegation that occurred in 2001. The charges continued, as Sandusky was charged with the sexual child abuse of 10 boys, over a 15-year time span. Surprisingly, his unethical actions resulted in a sentence of a minimum of 30 years, which could not exceed 60 years.
The Board of Directors is consisted of 11 members: James M. Elliot, the Chairman of the Board, 3 inside members and 7 outside members. The economy is stable and profitable, but that also means a lot of competition in the market. This poses a great opportunity for the company to grow and gain more of the market share. The only foreseeable real threat that the company will face is new competitors in the market.
The Enron scandal is one of the biggest scandals to take place in in American history. Enron was once one of the biggest companys in the world. It was the 6th largest energy company in the world. Due to Enron’s downfall investors of the company lost nearly 70 billion dollars. This was all due to many illegal activities done by Eron's employees. One of these employees was Andrew Fastow, the chief financial officer of the Enron corporation had a lot to do with the collapse of the Enron company.
Enron was the world 's biggest and richest company in the late nineteen-nineties. It 's net value reached 70 billion dollars over the course of a decade and crashed and burned in a single year of savage media coverage and brutal criminal investigations. It 's important to understand how individual arrogance, the corporate recklessness, and U.S. greed collaboratively cost the biggest economic scandal of its kind. Enron was founded in nineteen eighty-five by Kenneth Lay as a natural gas company in the Pacific Northwest. Around that time the energy markets of the US were being deregulated, that is transitioning from government control to free-market. Lay hired visionary Jeffrey Skilling. Under his leadership, the company moved to Houston, Texas
money as the value of the shares was not worth a lot now. So they
The ethical dilemma faced by Adelphia is fraud. Adelphia scandal involves both fraudulent financial reporting and misappropriation of assets. Adelphia founded by John Rigas family in 1952 in Pennsylvania. John Rigas family remained entirely Adelphia’s shares until 1986, when the company went public. In other words, Adelphia began with the family type corporation. John Rigas and his three high educated sons, Michael, Timothy, and James occupied the top executive position in the Adelphia. This is a big sign for fraud beginning.
The Case "Lincoln Savings and Loan Association" presents an individual named Charles Keating Jr. that was an intelligent law graduate and leading critic of the pornography industry, which became the commissioner of pornography to President Nixon and later a business owner. In 1978, he founded a real estate firm named American Continental Corporation (ACC), which he acquired Lincoln Savings and Loan Association in 1984. He promised to keep their management team, to not use brokered deposits to expand the size of the savings and loans and to keep Lincoln’s core business residential home loans. Disregarding these promises to the regulatory authorities, Keating broke every promise. In this, he replaced the management team, began taking in larger
Enron was a successful American energy, commodities and services company that is better known for one of the most notorious scandals in United States history. Before their involvement in criminal activity, Enron was also one of world’s major electricity and natural gas companies and was named “America’s Most Innovative Company” by Fortune magazine six years in a row. In 1985, Kenneth Lay, founder and CEO of Enron, merged Houston Natural Gas and InterNorth, Inc. to form Enron. By 1992, Enron became one of the largest sellers of natural gas in North America and in 1999, the Enron Online trading website had to be created to manage its trading business. Enron’s European Gas Trading team created Enron Online to allow stock holders to buy, sell, and trade commodity products globally; $6 billion worth of commodities such as gas, steel, metals, and freight were transacted on a daily basis. Enron soon became one of the largest trading sites in the world and “about 90 per cent of its income eventually came from trades over Enron Online” (CBC News).