Adelphia Communications Corp. founder John Rigas and his son, Timothy, were indicted by federal prosecutors on charges of engaging in a $300 million tax evasion scheme. Both men were found guilty of fraud earlier this year in connection with accounting fraud at the bankrupt cable company.
Prosecutors have said the Rigases took $1.85 billion from Adelphia for their personal use and then manipulated the cable company's books -- the changes resulted in the alleged failure to report more than $1.9 billion in income on federal tax returns. Both are charged with one count of conspiracy as well as separate counts of tax evasion for the 1998, 1999 and 2000 fiscal years, and face up to 20 years in prison on all of the counts.
In June, Rigas, 80, was sentenced to 15 years in federal prison, while former finance chief Timothy, 49, received 20 years. Both are appealing.
In April, Deloitte agreed to pay $50 million in a settlement over its role as Adelphia's auditor, while Adelphia paid $715 million under a deal to avoid criminal charges for accounting fraud. Adelphia entered Chapter 11 bankruptcy in 2002 after reports surfaced that the Rigases, the founders of the company, had taken millions out of the company for personal expenses.
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