Adelphia Communications Scandal - 1563 Words

Adelphia Communications scandal Matthew Tassin Trident University Ethics 501 Introduction Adelphia Communications Company was a television cable company whose headquarters centered in Coudersport, Pennsylvania. It ranked as the fifth most prestigious cable companies in United States. John Rigas is the founder of the company. The company was highly respected until an infamous scandal ensued following claims of bankrupt in 2002, at which time its headquarters relocated to greenwood Village, Colorado. According to Jefferson (2007), after the ensuing controversial legal proceedings ended, the company’s assets were liquefied. Time Warner Cable acquired most of the company’s assets in 2006. LFC auctioned the rest of the assets. Pioneer†¦show more content†¦The first ethical issue A company’s external editor is mandated with assessing a public company’s ability to accurately institute internal financial reporting structure and systems as well as evaluating the company to ensure that that there are no loopholes that mischievous individuals can use to fraud the company (Lowenstein, 2004). Shareholders and the public place their trust on the external auditor in revealing mischievous activities that take place in a company. In Adelphia Communication Corporation context, the shareholders and the public trusted Deloitte. They believed that Deloitte could and would evaluate Adelphia’s operations, identify and report suspicious activities perpetrated by the company. According to investigations, a number of warning signs could have notified Deloitte of the fraudulent activity at Adelphia. Therefore, Deloitte was either incompetent in performing its duty or it out-rightly falsified its report. Considering its reputation and ensuing investigation, th e latter is true. Based on AICPA professional conduct code, Deloitte failed in its duty because it did not conduct itself in the public’s interest. Instead, it gave false audit reports of the company in favor of Rigas family. Second ethical issue The second ethical issue surrounds the company’s executives, specifically Rigas family. Company’s executives should never use their company’s profits for personal gains (Lowenstein, 2004). This is exactlyShow MoreRelatedAdelphia Communications Scandal Revealed Essay782 Words   |  4 PagesADELPHIA COMMUNICATIONS SCANDAL REVEALED ________________________________________ The Adelphia Communications Scandal Created Controversy. The Fraudster Got Sympathy From the Judge and Received a Light Sentence for Stealing From Old Folks. ________________________________________ The Adelphia Communications scandal broke in 2002 when a footnote in a routine quarterly earnings statement revealed that the Rigas family had borrowed more than $2 billion from the company. But they didnt pay it backRead MoreThe Adelphia Communications scandal Essay1882 Words   |  8 PagesIntroduction The Adelphia Communications scandal occurred in March, 2002 when three of the original founding family members which included the father John Rigas, and two of his sons Michael and Timothy, along with two other company executives were arrested for improperly taking assets from the nation’s sixth-largest cable television company. The scam involved one of the biggest financial frauds faced by a publically held company. In the end stakeholders were forced to absorb massive losses asRead MoreThe Adelphia Communications Scandal John Rigas started Adelphia Communcations in 1952 with the800 Words   |  4 Pages The Adelphia Communications Scandal John Rigas started Adelphia Communcations in 1952 with the help of two partners, but soon bought it out. The company was taken public in 1986 and as a result would have to abide by the regulations of the SEC. By the early 2000s, Adelphia was one of the top cable companies in the United States. This was the peak of a corporation that would begin a downward spiral over the first half of 2002 as a result of fraudulent use of the company’s assets at its’ shareholdersRead MoreAnalysis Of The Book The Adelphia Debacle 1418 Words   |  6 PagesAldo Toomepuu 1 November 2015 ACG 6936 The Adelphia Debacle Some have been ensnared in the net of excessive debt. The net of interest holds them fast, requiring them to sell their time and energies to meet the demands of creditors. They surrender their freedom, becoming slaves to their own extravagance. ~Joseph B. Wirthlin Background At first glance this appears to be to another post-Enron big corporation fraud scandal. It was one of the first big cases tried after Enron. However, thereRead MoreAccounting Ethics1315 Words   |  6 Pagesenvironment is more conducive to ethical behavior. The ethical breaches in recent times, Weygandt, Kimel, Kieso( 2012) researched that â€Å"financial press open full articles and documents facts about financial scandals at Enron, WorldCom, HealthSouth, AIG, Adelphia Communication and Cable and more. As the scandal came to light people did not play the stock market if they believe that the stock prices were rigged.† Weygandt, Kimel, Kieso (2012) researched that; â€Å"the United States government regulators and lawmakersRead MoreAdelphia Communications1101 Words   |  5 PagesFirstname Lastname Instructor’s Name Course Number 20 July 2015 Adelphia Communications Adelphia is the 6th biggest cable television provider in the United States and, with various subsidiaries, gives services of cable television and local telephone service to customers in 32 states and Puerto Rico. Adelphia means brothers in Greek. It used to be one of Americas largest cable companies. John Rigas established the company and served as CEO and chairman. Johns son Tim was CFO, and Tims brothersRead MoreAdelphia Communications Corporation: Financial Statements1544 Words   |  7 PagesFinancial Statements The company that I have chosen to portray in my key assignment is the Adelphia Communications Corporation. The Adelphia Communications Corporation was a cable television company headquartered in Coudersport, Pennsylvania. It was owned by John Rigas and was founded in 1952; Adelphia became one of the largest cable companies in the United States. In 2002 Adelphia Corporation filed bankruptcy as a result of internal corruption. Shortly after filing bankruptcy the companyRead MoreEssay on Adelphia Scandal2340 Words   |  10 Pagesï » ¿ The Adelphia Scandal The Dawn of Adelphia Adelphia was founded in 1952 by John Rigas and his brother Gus Rigas in Coudersport, Pennsylvania with the purchase of their first cable franchise for $300. After 20 years, the Rigas brothers incorporated their company under the name Adelphia which derived its name from a Greek word which means brothers, an apt corporate title for a business that would employ generations of the Rigas family. Adelphia was a cable television companyRead MoreEthical Discernment: The Adelphia Scandal1655 Words   |  7 PagesEthical discernment Adelphia scandal Statistical analysis This paper relies on secondary data on a past phenomenon. It combines data from journal and other internet sources to bring out aspects of unethical behavior by Adelphias top executive. The analysis of data takes two ethical frameworks. Ethics involve an individuals moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions withinRead MoreEssay about Business Ethics and Kant1466 Words   |  6 PagesIntroduction The purpose of this paper is to discuss how Adelphia Communications’ leadership, particularly the Rigas family, violated the trust of the public and its investors through unethical and illegal business practices. First, a synopsis of the Adelphia scandal will be presented. Next, a brief overview of ethics and how they apply to maintaining good business and public trust will be discussed. Following the ethics overview, an outline of deontology and Kant’s Categorical Imperative will be