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  • Essay / Adelphia Case Study - 735

    Due to such lack of oversight, management remained unaware of such transactions which continued to negatively impact the business. This provided the Rigas family with numerous opportunities to circumvent controls since the lack of corporate governance allowed decisions to be made by the Rigas family without oversight. For example, the article "Adelphia Executives Arrested and Charged with 'Massive' Fraud" explains how Timothy Rigas had to limit himself to $1 million per month in compensation, taken from the company for his personal use . All decisions were continually made by these family members, in which case for Adelphia, it was the management team. With the lack of controls creating opportunity, they were free to do whatever they wanted – which they took incredible advantage of.