Which U.S. company was central to the 2002 Adelphia scandal involving hidden debt and overstated earnings?

Adelphia Communications was the U.S. company central to the 2002 scandal involving hidden debt and overstated earnings.

The cable company was founded by the Rigas family, which controlled the business through family voting arrangements. Investigators alleged that Adelphia concealed billions of dollars in debt through off-balance-sheet partnerships and used company funds for personal and family expenses.

The scandal became public in March 2002, when Adelphia disclosed previously hidden liabilities. The company filed for bankruptcy protection later that year. Founder John Rigas and his son Timothy Rigas were convicted of bank fraud, securities fraud, and other offenses; John Rigas received a 15-year prison sentence, later reduced.

Adelphia is often mixed up with Enron or WorldCom because all involved early-2000s accounting scandals. Adelphia’s distinctive feature was the Rigas family’s control and the use of partnerships to conceal debt.