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John Rigas

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Submitted By carissajewel1030
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There are many different types of fraud one can commit. Banking, security, and wire fraud are just a few different types. Any type of fraud a person commits is very serious and is usually punished to the full extent of the law. In a large company or corporation, fraudulent acts are usually premeditated and happen over long periods of time. It can start with anyone stealing a few dollars taken here and there and then it can evolve into intricate plans which can defraud the companies millions, even billions of dollars. This is something that happened with the Adelphia Communications Corp. in the early 2000's. John Rigas, founder and former CEO of Adelphia, and his two sons, Timothy and Michael Rigas, along with the former assistant treasurer, Michael Mulcahey, were all arrested for defrauding Adelphia out of millions of dollars. All four of the defendants were charged with conspiracy, bank, securities and wire fraud. Only John Rigas and his and his son Timothy were actually found guilty on 18 out of the 23 charges filed against them and were facing sentences up to 30 years in jail. Michael Rigas was found not guilty on six of the charges, but the jury was undecided on the other 17. As for Mulcahey, he was found not guilty on all 23 charges (Adelphia Founder). "John Rigas is serving 15 years in a federal prison, while his son Timothy is serving a 20 year sentence" (John). Adelphia all started in "1951 when John Rigas paid $72,000 for a movie theater that was no longer being used in Coudersport, Pennsylvania. The next year he spent $300 for a local cable franchise" (Adelphia Timeline). That's all it took for him to start up a company that little did he know at the time that it would become a multi-million dollar corporation. His brother, Gus Rigas, ended up joining in on the franchise in 1954. Once Rigas and his brother teamed up, they renamed the company

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