Convicted cable bosses pay out $728m
May 1, 2012
By Chris Forrester
Adelphia Communications was once the USA’s fifth-largest cable MSO. Its founder, John Rigas along with son Tim Rigas, were convicted back in 2004 of securities fraud. The company itself went bankrupt in 2006 and its assets split between Comcast and Time Warner.
Now the Southern District of New York has confirmed to the 8,500 claimants (mostly stockholders) to the company’s assets that the Court has secured about 95 per cent of the Rigas’ family fortune, worth more than $728 million for distribution to claimants.
John Rigas received a 15 year prison term, while his son was sentenced to 20 years for his role as CFO in the business.