1. The fraud triangle consists of perceived pressure, perceived opportunity, and rationalization. How do you think John Rigas rationalized his dishonest use of company assets?
2. What are other ways people rationalize fraudulent behavior?
3. How would owning and operating a family business create temptations and opportunities to commit fraud?
4. Based on the facts of the case, do you think this case has led to civil litigation, criminal prosecution, or both? Explain your answer.
5. Suppose you were an expert witness in this case. What would be some of the facts to which you would pay special attention?
John Rigas (founder and CEO of Adelphia Communications Corporation) was an extraordinary man. Throughout his professional career, he was honored for his entrepreneurial achievements and his humanitarian service. Among other awards, he received three honorable doctorate degrees from distinguished universities, was named Entrepreneur of the Year by Rensselaer Polytechnic Institute (his college alma mater), and was inducted into the Cable Television Hall of Fame by Broadcasting and Cable magazine. He worked hard to acquire wealth and status. But a $2.3 billion financial fraud eventually cost Rigas everything.