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News > Companies
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Rigas family faces indictment
Federal prosecutors reportedly are prepared to file criminal charges against Adelphia founder, sons.
July 15, 2002: 2:39 PM EDT

NEW YORK (CNN/Money) - Federal prosecutors could file an indictment they have prepared against Adelphia founder John Rigas and his three sons as early as this week, a newspaper reported Monday.

The criminal indictment against Rigas and sons Timothy, Michael and James could include charges of mail, bank and wire fraud, and likely will be filed by the Justice Dept. along with a civil lawsuit by the Securities and Exchange Commission, according to a report in USA Today.

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The Justice Dept. and the SEC declined comment, the newspaper said.

Adelphia also declined to comment. John Rigas' lawyer, Peter Fleming, an attorney at Curtis Malett-Prevost Clot & Mosle, said he was not aware of the indictment. Lawyers for the Rigas brothers could not be reached for immediate comment.

Investigators began looking into Adelphia's founding Rigas family when the company said it had lent them about $3.1 billion as collateral. Rigas and his family allegedly used the money to guarantee loans for private purchases, including a golf course, property and dealings with the Buffalo Sabres hockey team.

The filing of criminal charges would be the second against an individual since the recent rash of corporate scandals began, the report said. Prosecutors also filed charges against former ImClone CEO Samuel Waksal for activities related to alleged insider trading of company stock.

An earlier version of this story that carried a headline referring to Delphi Corp. was incorrect.  Top of page






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