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The Adelphia update

  • From: blitz
  • Date: Mon Jul 15 03:57:14 2002

US prosecutors set to indict Adelphia family-paper
Last Updated: July 15, 2002 12:23 AM ET
WASHINGTON, July 14 (Reuters) - Federal prosecutors looking into questionable corporate dealings at bankrupt Adelphia Communications Corp. ADELQ.PK are set to bring charges against the Rigas family, USA Today reported on Monday.

Prosecutors have prepared an indictment against Adelphia founder John Rigas and his three sons and are planning to file it as early as this week, the newspaper reported, citing sources close to the investigation.

The criminal charges were expected to be filed in tandem with a civil lawsuit by the U.S. Securities and Exchange Commission, the newspaper said, adding that both the Justice Department and the SEC declined comment.

Adelphia is the target of a Securities and Exchange Commission accounting probe and two federal grand jury investigations into multibillion-dollar off-balance sheet loans to the Rigas family, which founded the No. 6 U.S. cable television operator.

Coudersport, Pennsylvania-based Adelphia filed for Chapter 11 bankruptcy protection in June, following months of disclosures of off-balance-sheet, company-backed loans to the family, as well as missed interest payments, overstated earnings and criminal and regulatory probes into its accounting practices.