Largest Single Distribution to Victims in Department of Justice History
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that more than $728 million forfeited in connection with the Office’s investigation and prosecution of the Adelphia Communications Corporation securities fraud is being distributed to victims who suffered financial losses as a direct result of the fraud.
In July 2004, John Rigas, the founder and former Chairman and Chief Executive Officer of Adelphia, and Timothy Rigas, the former Chief Financial Officer, were convicted in Manhattan federal court for their participation in a massive securities fraud scheme to defraud investors, creditors, and the public concerning the financial condition and operating performance of Adelphia. In April 2005, the Rigases, as well as other members of the family, agreed to forfeit more than 95% of the family’s assets to the Government. The Adelphia distribution is the largest single distribution of forfeited assets to victims in Department of Justice history.