In 2002 one of the largest cable corporations Adelphia Communications Corporations filed for bankruptcy protection, in April of that same year the Security Exchange Commission announced it plans to investigate some of the actions of senior management personnel. The article I chose to analysis was found in the Washington Post dated April 26, 2005 after the Attorney Generals Office had reached an agreement with the Rigas family. It would appear that John Rigas and one of his son’s Timothy Rigas participated in rampant earnings manipulation and self-dealing (Johnson 2005). The SEC had said members of Rigas family used corporate funds for their own personal use and also failed to pay Adelphia for securities they owned (Johnson 2005). Basically the John Rigas and certain family members excluded billions of dollars from its consolidated financial statements, inflated earnings to meet Wall Street’s expectations and used corporate funds to purchase company stocks for personal gain.......
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Approximate Word Count: 569
Approximate Pages: 3 (260 words per double-spaced page) |