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Rigases, indicted in 5th largest US bankruptcy, post bail
New York, July 25: The founder of the sixth-largest US cable company and his two sons were released on a $10 million bond after they were charged in Manhattan Federal Court with `looting` the company and turning it into their own `personal piggy bank`.
Adelphia, with around five million television cable subscribers, filed for bankruptcy in June. The Rigases resigned from their posts in May amid concerns over the firm's finances.
After their arrest, early on Wednesday at a Manhattan apartment paid for by Adelphia, the Rigases were brought before US Magistrate Judge Gabriel Gorenstein, who released them on bond.
"This is a case where the losses to the public alleged in the complaint are measured in the billions of dollars," Timothy Coleman, assistant Manhattan US attorney, told Gorenstein.
If convicted, the Rigases face a minimum prison sentence 15 to 20 years. "Based on the sentence exposure and based upon the government's evidence, there is enormous incentive for the defendants to flee," Coleman said.
Bureau Report