John Rigas
Encyclopedia
John J. Rigas is one of the founders of Adelphia Communications Corporation, which at its peak was one of the largest cable TV companies in the United States. He was also the majority owner of the Buffalo Sabres
franchise of the National Hockey League
. In 2005, he was convicted on multiple charges of fraud and sentenced to 15 years in prison.
, New York
, to Greek immigrants James and Eleni Rigas who sought a better life in the U.S. for their children, John had three siblings: Gus, Mary and Katherine. His first job was, at the age of nine, busing tables. After graduating from Wellsville High School, he enlisted in the U.S. Army
and was placed in an armored infantry division in 1943 and he saw combat in France.
After the war ended, he returned to life in Wellsville and soon afterward enrolled at Rensselaer Polytechnic Institute
in Troy, New York
. He studied engineering and earned a bachelor of science degree in management engineering. He was also a member of the Nu Theta Chapter of Phi Mu Delta
. He then returned to Wellsville, only to take a job with the Sylvania
corporation in Emporium, Pennsylvania
.
, a town midway between Wellsville and Emporium. He borrowed the money from his family and friends, including his godfather, James Lucas, to purchase the theater and started operating it in the evenings while he worked days at the Sylvania plant.
The Rigas cable television enterprise first started in Coudersport when the family purchased the town's TV cable franchise. Always looking to grow his company, John had ambitious plans and teamed with his brother Gus to start Adelphia after buying out his partners. They borrowed heavily to buy more and more suburban cable companies and avoided city franchises. Eventually, Adelphia became the largest cable provider outside Philadelphia, Pittsburgh, Cleveland, and South Florida and had systems reaching over 30 states and over 5.6 million customers. Adelphia also launched product lines such as high-speed cable Internet service and long-distance telephone service.
Rigas was honored numerous times, including honorary degrees by three universities.
, 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.
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.
Buffalo Sabres
The Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League .-Founding and early success: 1970-71—1980-81:...
franchise of the National Hockey League
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
. In 2005, he was convicted on multiple charges of fraud and sentenced to 15 years in prison.
Beginnings
Born in WellsvilleWellsville (town), New York
Wellsville is a town in rural Allegany County, New York. As of the 2000 census, the town had a population of 7,678.Wellsville town is centrally located in the south half of the county, eight miles north of the Pennsylvania border. Wellsville is also the name of village within this town...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, to Greek immigrants James and Eleni Rigas who sought a better life in the U.S. for their children, John had three siblings: Gus, Mary and Katherine. His first job was, at the age of nine, busing tables. After graduating from Wellsville High School, he enlisted in the U.S. Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
and was placed in an armored infantry division in 1943 and he saw combat in France.
After the war ended, he returned to life in Wellsville and soon afterward enrolled at Rensselaer Polytechnic Institute
Rensselaer Polytechnic Institute
Stephen Van Rensselaer established the Rensselaer School on November 5, 1824 with a letter to the Rev. Dr. Samuel Blatchford, in which van Rensselaer asked Blatchford to serve as the first president. Within the letter he set down several orders of business. He appointed Amos Eaton as the school's...
in Troy, New York
Troy, New York
Troy is a city in the US State of New York and the seat of Rensselaer County. Troy is located on the western edge of Rensselaer County and on the eastern bank of the Hudson River. Troy has close ties to the nearby cities of Albany and Schenectady, forming a region popularly called the Capital...
. He studied engineering and earned a bachelor of science degree in management engineering. He was also a member of the Nu Theta Chapter of Phi Mu Delta
Phi Mu Delta
Phi Mu Delta is a small, national fraternity founded on March 1, 1918 at the Universities of Connecticut, New Hampshire, and Vermont. The fraternity is focused on the three ideals of democracy, service, and brotherhood.-Founders' Creed:...
. He then returned to Wellsville, only to take a job with the Sylvania
Osram Sylvania
Osram Sylvania Inc. is the North American operation of lighting manufacturer Osram GmbH, which is owned by Siemens AG. It was established in January 1993, with the acquisition of GTE’s Sylvania lighting division by Osram GmbH....
corporation in Emporium, Pennsylvania
Emporium, Pennsylvania
Emporium is a borough in Cameron County, Pennsylvania, west-northwest of Williamsport. Early in the twentieth century, it had large powder plants and manufactories of radio tubes, incandescent lamps, paving brick, flour, iron, lumber, sole leather, etc. In 1900, 2,463 people lived in Emporium, and...
.
Business career
In 1951 Rigas started his first business venture by buying a movie theater in Coudersport, PennsylvaniaCoudersport, Pennsylvania
Coudersport is a borough in Potter County, Pennsylvania, east by south of Erie on the Allegheny River. The populations were these: 1,530 in 1890; 3,217 in 1900; and 3,100 in 1910. The population was 2,650 at the 2000 census...
, a town midway between Wellsville and Emporium. He borrowed the money from his family and friends, including his godfather, James Lucas, to purchase the theater and started operating it in the evenings while he worked days at the Sylvania plant.
The Rigas cable television enterprise first started in Coudersport when the family purchased the town's TV cable franchise. Always looking to grow his company, John had ambitious plans and teamed with his brother Gus to start Adelphia after buying out his partners. They borrowed heavily to buy more and more suburban cable companies and avoided city franchises. Eventually, Adelphia became the largest cable provider outside Philadelphia, Pittsburgh, Cleveland, and South Florida and had systems reaching over 30 states and over 5.6 million customers. Adelphia also launched product lines such as high-speed cable Internet service and long-distance telephone service.
Rigas was honored numerous times, including honorary degrees by three universities.
Criminal Indictment
He was forced to resign from his position as CEO in May 2002 after being indicted for bank fraudBank fraud
Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense...
, wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
, and securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
. 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
Prison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...
. 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.
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
Tom Golisano
Blase Thomas Golisano is an American businessman and philanthropist. He is the founder of Paychex, the second-largest payroll processor in the United States and former co-owner of the Buffalo Sabres hockey team and of the Buffalo Bandits lacrosse team...
.
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
Pardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
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.