Case library · Wall Street
The Cable Company Founder
United States v. Rigas (2007)
Charge: Conspiracy, securities fraud and bank fraudCourt: U.S. Court of Appeals, Second CircuitState: New YorkDocket: Wall Street
The facts
A man founded a large cable TV company and ran it as chief executive. The company and his family's private firms shared billions of dollars in bank loans. Prosecutors say he and his son moved over $2.8 billion of that debt off the company's books, inflated customer numbers and earnings, and let the family take company cash, including $200 million to pay off family stock loans. He says prosecutors had to prove the accounting broke formal accounting rules, and did not. Is he guilty?
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Rigas, 490 F.3d 208 (2d Cir. 2007)
Read more at law.justia.com. The source reveals the outcome.