John Rigas and Two Sons Arrested for Securities Fraud
By Mark Scott
New York City, NY – Three members of the founding family of troubled cable operator Adelphia Communications were arrested Wednesday morning by U.S. postal inspectors for an alleged conspiracy to commit securities fraud.
Former Chief Executive John Rigas, former Chief Financial Officer Timothy Rigas and former executive Michael Rigas are expected to be arraigned in U.S. District Court in Manhattan later today.
Two other non-family Adelphia executives were arrested in Pennsylvania by postal inspectors.
The Rigases resigned from Adelphia following the disclosure of billions of dollars of off-balance-sheet loans guaranteed by the company to the Rigas family, overstated earnings and other accounting issues.