Fraud Case
THE NATION’S NEWSPAPER
BS2003-01b
Collegiate Case Study
Adelphia founder, 2 sons, 2 others arrested in fraud
By David Lieberman and Greg Farrell
www.usatodaycollege.com
Accounting fraud
Part II: The results
“Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices always illegal or can they ever be justified? This case study will present examples of companies who have used inappropriate accounting practices, the results of their deceptions and the government's plan to avoid future incidents.
WorldCom scandal brings subpoenas, condmnation
By Andrew Backover and Thor Vladmanis
Andersen’s partners chart firm’s future today
By Greg Farrell
Client-starved Arthur Andersen cuts 7,000 jobs
By Greg Farrell
Dominoes hit WorldCom partners, clients
By Michelle Kessler
Adelphia plans to file Chapter 11
Cable firm expected to seek bankruptcy protection today
NEW YORK -- The waiting should be over today. Adelphia Communications plans to file for bankruptcy protection, nearly three months after the onceproud No. 6 cable operator first disclosed dealings with the family of founder John Rigas that turned it into a symbol of corporate scandal. The company is expected to announce that it has raised as much as $1.5 billion from banks led by J.P. Morgan Chase and Citigroup to keep operating while a bankruptcy judge decides how creditors will be paid. A Chapter 11 filing — the biggest in cable history — could help efforts to find a buyer for some, or all, of Adelphia's systems, which serve 5.7 million subscribers. The court can protect an acquirer from unexpected liabilities, including those stemming from several shareholder lawsuits and investigations into Adelphia's finances by two grand juries and the
BS2003-01b
Collegiate Case Study
Adelphia founder, 2 sons, 2 others arrested in fraud
By David Lieberman and Greg Farrell
www.usatodaycollege.com
Accounting fraud
Part II: The results
“Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices always illegal or can they ever be justified? This case study will present examples of companies who have used inappropriate accounting practices, the results of their deceptions and the government's plan to avoid future incidents.
WorldCom scandal brings subpoenas, condmnation
By Andrew Backover and Thor Vladmanis
Andersen’s partners chart firm’s future today
By Greg Farrell
Client-starved Arthur Andersen cuts 7,000 jobs
By Greg Farrell
Dominoes hit WorldCom partners, clients
By Michelle Kessler
Adelphia plans to file Chapter 11
Cable firm expected to seek bankruptcy protection today
NEW YORK -- The waiting should be over today. Adelphia Communications plans to file for bankruptcy protection, nearly three months after the onceproud No. 6 cable operator first disclosed dealings with the family of founder John Rigas that turned it into a symbol of corporate scandal. The company is expected to announce that it has raised as much as $1.5 billion from banks led by J.P. Morgan Chase and Citigroup to keep operating while a bankruptcy judge decides how creditors will be paid. A Chapter 11 filing — the biggest in cable history — could help efforts to find a buyer for some, or all, of Adelphia's systems, which serve 5.7 million subscribers. The court can protect an acquirer from unexpected liabilities, including those stemming from several shareholder lawsuits and investigations into Adelphia's finances by two grand juries and the