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Adelphia's founding family indicted - Broadcasting & Cable

Adelphia's founding family indicted

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Adelphia Communications Corp. founder John Rigas and two of his sons were indicted Monday on federal securities, wire- and bank-fraud charges.

Rigas and his sons, former chief financial officer Timothy Rigas and former executive vice president of
operations Michael Rigas, were charged with the crimes in July.

The indictment clears the way for a trial.

Adelphia is pursuing its own federal lawsuit against the family.

On Monday, the company stated, "Today's indictments will help to further
distance Adelphia from the wrongful conduct of the Rigas family and help to advance
the company's efforts to recover the assets improperly taken from Adelphia by
the Rigas family and certain associates."

The Rigases are accused of pilfering Adelphia coffers for personal family
projects and stock buys.

John Rigas fired back, saying in his own statement, "The co-borrowing
agreements that this indictment focuses on were legal and entirely proper."

He contended the transactions were, among other things, negotiated by outside
counsel, approved by Adelphia's outside directors and disclosed in public
filings.

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