In 2002 former exec of Adelphia Communications Corp., were charged with massive fraud that allegedly cost investors sixty billion dollars( 2 ).
Deputy US Attorney General Larry Thompson, who headed said Corporate Fraud Task Force said Ex-Adelphia executives who were charged "the defendants intentionally submitted false information to lenders and made false statements to the public in order to maintain their failing company's stock price,"
US AG Thompson also said "used fraudulent documents and misleading accounting tricks to obtain more than $420 million in Adelphia stock for the Rigas family without paying a dime, and lied to the company's independent directors that they were paying cash for the stock," (4 ).
Tim Rigas also allegedly used company planes to fly friends on golfing trips and on an African safari. He used company funds to by a $700,000 country club membership in Tim Rigas Hilton Head, S.C, and spent 13 million to build champion ship golf course near Adelphia's headquarters(5 ).
A settlement was Reached by Adelphia and the US Attorney General office. Instead of jail time, Adelphia will put $715 million into an account and the government will compensate investors hurt by Adelphia's fraud (6 ).