Government Widens Probe of Rigas Family
The U.S. government is widening its probe of the dealings of the Rigas family, founders of troubled cable operator Adelphia Communications Corp., to include possible tax violations, sources said.
The Internal Revenue Service is assisting the Justice Department in its investigation of three members of the Rigas family, who were arrested last month on securities fraud charges of looting the company and using the company’s coffers as their “personal piggy bank,” one source said.
Spokesmen at both the Justice Department and the IRS declined to comment. Attorneys for the Rigas family were not immediately available for comment.
John Rigas, Adelphia’s chief executive who founded the company with a $300 check in 1952, was arrested last month along with his two sons, Timothy Rigas, chief financial officer, and Michael Rigas, executive vice president of operations.
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