In June 2005, John Rigas, the 80-year-old founder and former chief executive officer (CEO) of Adelphia Communications was sentenced to 15 years in jail for defrauding investors and lenders of over a billion dollars. His son, the former chief financial officer (CFO), was sentenced to 20 years in jail. To understand the charges, you need to first understand a bit about Adelphia's history. Adelphia started as a one-town cable company in 1952 and, at the time the fraud accusations were made public, had grown into the sixth-largest cable television provider in the United States. With the company starting as a family-owned business, Adelphia's operations were always a central part of the personal lives of the Rigas family members. However, the extent to which their personal lives were mixed in with the business activities was never clear to shareholders-at least, not nearly as clear as when they were reported in an article in the August 12, 2002, issue of Fortune. Under the following questions, we present a table from that article that summarizes how the Rigas family allegedly used over $1.2 billion of Adelphia's money-money that ultimately belonged to Adelphia's shareholders.
1. What is the accounting concept that the Rigas family is accused of violating?
2. Based on the information provided in the following table, can you determine which of the family's dealings are clearly inappropriate and which are clearly appropriate?
3. As a shareholder, how might you attempt to ensure that this kind of behaviour does not occur or, at least, does not occur without you knowing about it?
4. Aside from Adelphia's shareholders, who else might be harmed by these actions committed by the Rigas family?

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Family Assets-Sort Of Some of the notable ways the Rigas family used Adelphia shareholder dollars. On the Receiving End Who's Behind the Entity How Much? Dobaire Designs Adelphia paid this company, owned by Doris Rigas (John's wife), for design services. 371,000 $ 2,000,000 Adelphia paid John Rigas's farm for lawn care and snowplowing. Wending Creek Farms Adelphia financed the production of a movie by Ellen Rigas (John's daughter). SongCatcher Films 3,000,000 $ 12,000,000 $ 13,000,000 The company made payments to a furniture store run by Doris Rigas and owned by John. Eleni Interiors The Golf Club at Wending Creek Farms Adelphia began developing a ritzy golf club. $ 26,000,000 $ 65,000,000 $ 150,000,000 $1,000,000,000 $1,271,371,000 Wending Creek 3656 The company bought timber rights that would eventually revert to a Rigas family partnership. Adelphia funded a venture capital firm run by Ellen Rigas's husband. Praxis Capital Ventures Adelphia underwrote the Rigas's purchase of the Buffalo Sabres hockey team. Niogara Frontier Hockey LP Adelphia guaranteed loans to a Rigas family partnership, which used the funds to buy shares. Highland 2000 Total