Michael J. Rigas, the former executive vice president of cable company Adelphia Communications Corp. will serve 10 months of home confinement and two years of probation. He will also pay a $2,000 fine. This is his punishment for helping to conceal fraud at the company.
Rigas faced up to three years in prison for filing a false statement with the SEC in connection with a 1999 purchase of Adelphia stock for $1.7 million. He reported that source of the money he used to purchase the shares was personal funds. He later admitted that the money actually came from Adelphia.
In 2004, his father (John Rigas) and brother (Timothy Rigas, former CFO) were convicted of taking more than $2 billion from Adelphia for personal use, as well as mislading investors about the company’s performance. John was sentenced to 15 years in prison, and Timothy was sentenced to 20 years in prison. Both remain free on bail while their appeals are pending.