John Rigas - Criminal Indictment

Criminal Indictment

He was forced to resign from his position as CEO in May 2002 after being indicted for bank fraud, wire fraud, and securities fraud. Timothy J. Rigas and Michael J. Rigas, his sons, as well as James Brown and Michael Mulcahey were also charged with participation in these crimes. The executives are accused of looting the corporation by concealing $2.3 billion in liabilities from corporate investors and of using corporation funds as their personal funds.

Rigas was convicted of the charges in the summer of 2004 and on June 27, 2005 was sentenced to 15 years in federal prison. Adelphia Corporation was forced to file for bankruptcy after it acknowledged that the three Rigases had taken $3.1 billion in loans that were not recorded on the books.

In 2005 John Rigas and his son, Timothy Rigas were charged with tax evasion and pleaded not guilty in October 2005. On January 27, 2012, the charge of tax evasion was officially dismissed.

Following John Rigas's arrest, the NHL virtually stripped him of his authority over the Sabres. After more than a year as a ward of the league, the franchise was purchased by another multibillionaire from western New York, Tom Golisano.

On May 24, 2007 the Second Circuit Court of Appeals upheld the 2004 convictions of John and Timothy Rigas on 17 of the original 18 counts.

On June 27, 2007, John Rigas and his son, Timothy J. Rigas, were ordered to report to prison on August 13 for their fraud convictions.

On August 13, 2007, John and Timothy Rigas reported to the Federal Correctional Complex, Butner, located about 45 minutes northwest of Raleigh, North Carolina, unsuccessful in their request to be allowed to serve their time together at a facility close to their homes in Coudersport, Pa.

On November 1, 2007, after a 20-day bidding war involving 31 bidders, the palatial $30 million former Adelphia Headquarters building in Coudersport, PA was sold to an undisclosed buyer at auction for just $3.4 million.

On March 3, 2008, The Supreme Court rejected the final appeal without comment. The case was Rigas v. U.S., 07-494. John Rigas' original release date was September 4, 2020, but a federal judge reduced his sentence by three years, and his new release date is scheduled to be January 23, 2018.

Rigas applied for a Presidential pardon in January 2009 but George W. Bush left office without making a decision on Rigas' pardon request.

Rigas was forced to sell his house in Indigo Run, Hilton Head Island, South Carolina in order to pay for legal fees.

Sometime during the week of November 6th, 2011 both John and Timothy Rigas were transferred to the Low Security Facility of the Allenwood Federal Correctional Complex in Pennsylvania. The Allenwood FCC is located 2 miles north of Allenwood on Route 15, about 11 miles south of Williamsport.