John Rigas

Last updated • 5 min readFrom Wikipedia, The Free Encyclopedia

John Rigas
John Rigas.jpg
Rigas in 2018
Born(1924-11-14)November 14, 1924
DiedSeptember 30, 2021(2021-09-30) (aged 96)
EducationManagement Engineering - (B.S.)
Known forFounder of Adelphia Communications Corporation
Political party Republican [ citation needed ]
Criminal charges
Criminal penalty15 years imprisonment
SpouseDoris Nielsen[ citation needed ]
ChildrenTimothy J. Rigas,
Michael J. Rigas
James P. Rigas
Ellen Rigas Venetis[ citation needed ]
Parent(s)Demetrios "James" Rigas
Eleni Brazas Rigas[ citation needed ]

John James Rigas (November 14, 1924 – September 30, 2021) was an American businessman who was one of the founders of Adelphia Communications Corporation, which at its peak was one of the largest cable TV companies in the United States. He was also the majority owner of the Buffalo Sabres franchise of the National Hockey League. In 2005, he was convicted on multiple charges of fraud and sentenced to 15 years in prison, serving nine of those years before being released due to declining health.

Contents

Beginnings

Rigas was born in Wellsville, New York, to Greek immigrants James and Eleni (Brazas) Rigas, who sought a better life in the United States for their children. [1] [2] John had three siblings: Gus, Mary, and Katherine. James was an entrepreneur of some repute in Wellsville, beginning as a shoe-shine man, then in 1921 introducing the Texas hot to Wellsville. [3] The Texas hot stand remains in operation, currently co-owned by John's nephew, Chris Rigas. [4] John's first job was, at the age of nine, busing tables. After graduating from Wellsville High School, he was drafted into the U.S. Army [ citation needed ] and was placed in the 20th Armored Division in 1943, seeing combat in France. [5] His division ended up being involved in the liberation of Dachau concentration camp in April 1945. After the war ended he returned to life in Wellsville and, soon afterward, enrolled at Rensselaer Polytechnic Institute in Troy, New York. He studied engineering and earned a bachelor of science degree in management engineering. He was also a member of the Nu Theta Chapter of Phi Mu Delta. He then returned to Wellsville, only to take a job with the Sylvania corporation in Emporium, Pennsylvania.

Business career

In 1952, Rigas started his first business venture by buying a movie theater in Coudersport, Pennsylvania, a town midway between Wellsville and Emporium. [6] He borrowed the money from his family and friends, including his godfather, James Lucas, to purchase the theater and started operating it in the evenings while he worked days at the Sylvania plant.

The Rigas cable television enterprise first started in Coudersport when the family purchased the town's TV cable franchise. Always looking to grow his company, John had teamed with his brother Gus to start Adelphia after buying out his partners. They borrowed heavily to buy more and more suburban cable companies and avoided city franchises. Eventually, Adelphia became the largest cable provider outside Philadelphia, Pittsburgh, Cleveland, and South Florida and had systems reaching over 30 states and over 5.6 million customers. Adelphia also launched product lines such as high-speed cable Internet service and long-distance telephone service.

Rigas was honored numerous times, including honorary degrees by three universities. In 1997 he bought the Buffalo Sabres from team co-founder Northrup R. Knox, installing his son Timothy as team president. After considering buying a professional baseball franchise, Rigas opted to relaunch the Wellsville Nitros as a collegiate summer baseball team in 1998. [7] His political contributions include a total of $50,750 to the Republican Party, [8] with which he had affiliation,[ citation needed ] and placed a strong value in conservative Republican family values.[ citation needed ]

Criminal indictment and incarceration

Rigas resigned from his position as CEO of Adelphia in May 2002 after being indicted for bank fraud, wire fraud, and securities fraud. His sons Timothy and Michael, as well as James Brown and Michael Mulcahey, were also charged with participation in these crimes. The executives were accused of looting the corporation by concealing $2.3 billion in liabilities from corporate investors and of using corporation funds as their funds. [9]

John Rigas was convicted of the charges in the summer of 2004, and on June 27, 2005, was sentenced to 15 years in federal prison. Adelphia Corporation filed for bankruptcy after it acknowledged that the three Rigases had taken $3.1 billion in loans that were not recorded on the books. In 2005 John and Timothy were charged with tax evasion and pleaded not guilty in October 2005. On January 27, 2012, the charge of tax evasion was officially dismissed. Following John's arrest, the NHL virtually stripped him of his authority over the Sabres. After more than a year as a ward of the league, the franchise was purchased by another western New York multibillionaire, Tom Golisano.

On May 24, 2007, the Second Circuit Court of Appeals upheld John's and Timothy's 2004 convictions on 17 of the original 18 counts. On June 27, 2007, John and Timothy were ordered to report to prison on August 13 for their fraud convictions. On August 13 John and Timothy reported to the Federal Correctional Complex, Butner, located about 45 minutes northwest of Raleigh, North Carolina, unsuccessful in their request to be allowed to serve their time together at a facility close to their homes in Coudersport, Pennsylvania. On November 1, 2007, after a 20-day bidding war involving 31 bidders, the palatial $30 million former Adelphia Headquarters building in Coudersport was sold to an undisclosed buyer at auction for $3.4 million.

On March 3, 2008, the Supreme Court rejected the final appeal without comment. The case was Rigas v. U.S., 07-494. John's original release date was September 4, 2020, but a federal judge reduced his sentence by three years, and his new release date was scheduled to be January 23, 2018. Rigas applied for a presidential pardon in January 2009, but George W. Bush left office without making a decision. [10] Rigas sold his house in Indigo Run, Hilton Head Island, South Carolina, to pay for legal fees. Sometime during the week of November 6, 2011, both John and Timothy were transferred to the Low Security Facility of the Allenwood Federal Correctional Complex in Pennsylvania. The Allenwood FCC is located 2 miles north of Allenwood on Route 15, about 11 miles south of Williamsport. [11]

Illness and death

On December 14, 2015, Rigas' lawyers announced that he was terminally ill with bladder cancer and had between one and six months to live. Rigas was diagnosed with cancer before his conviction and, under his sentencing, could seek compassionate release if he had less than three months to live. [12] Judge Kimba Wood issued an order allowing for Rigas's release on February 19, 2016. [9] Rigas was alive and well enough to make public appearances by June 2016. [13]

Rigas died in Coudersport, Pennsylvania, on September 30, 2021, at the age of 96. [14] [15] [16]

Related Research Articles

<span class="mw-page-title-main">Buffalo Sabres</span> National Hockey League franchise in Buffalo, New York

The Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. The Sabres compete in the National Hockey League (NHL) as a member of the Atlantic Division in the Eastern Conference. The team was established in 1970, along with the Vancouver Canucks, when the league expanded to 14 teams. The Sabres have played their home games at KeyBank Center since 1996, having previously played at the Buffalo Memorial Auditorium since their inception. The Sabres are owned by Terry Pegula, who purchased the club in 2011 from Tom Golisano.

<span class="mw-page-title-main">New York–Penn League</span> American sports league in minor league baseball

The New York–Penn League (NYPL) was a Minor League Baseball league that operated in the northeastern United States from 1939 to 2020. Classified as a Class A Short Season league, its season started in June, after major-league teams signed their amateur draft picks to professional contracts, and ended in early September.

<span class="mw-page-title-main">Coudersport, Pennsylvania</span> Borough in Pennsylvania, United States

Coudersport is a borough in and the county seat of Potter County, Pennsylvania. It is located approximately 110 miles (180 km) east by south of Erie on the Allegheny River. The population was 2,371 at the 2020 census.

<span class="mw-page-title-main">Wellsville, New York</span> Town in New York, United States

Wellsville is a town and largest community in Allegany County, New York, United States. As of the 2020 census, the town had a population of 7,099.

Adelphia Communications Corporation was an American cable television company with headquarters in Coudersport, Pennsylvania. It was founded in 1952 by brothers Gus and John Rigas after the pair purchased a cable television franchise for US$300. Combining various cable properties, the company became one of the most successful in the United States and reached over two million subscribers in 1998. In addition to cable television, Adelphia later started providing high-speed internet, phone services and voice messaging for businesses.

<span class="mw-page-title-main">Western New York</span> Region in New York, United States

Western New York (WNY) is the westernmost region of the U.S. state of New York. The eastern boundary of the region is not consistently defined by state agencies or those who call themselves "Western New Yorkers". Almost all sources agree WNY includes the cities of Buffalo, Niagara Falls, Jamestown, and the surrounding suburbs, as well as the outlying rural areas of Niagara Frontier, and Chautauqua-Alleghany. Many would also place Rochester and the Genesee Valley in the region, although those legally belong in the Finger Lakes Region and are separate from Western New York Region.

<span class="mw-page-title-main">Phi Mu Delta</span> American collegiate fraternity

Phi Mu Delta (ΦΜΔ) is a national fraternity founded on March 1, 1918, at the Universities of Connecticut, New Hampshire, and Vermont. The fraternity is focused on the ideals of democracy, service, and brotherhood.

<span class="mw-page-title-main">Empire Sports Network</span> American regional sports network (1990–2005)

Empire Sports Network was an American regional sports network that was owned by the Adelphia Communications Corporation. The network was available on cable providers in much of upstate New York, as well as parts of northern Pennsylvania and eastern Ohio. The network ceased operations on March 7, 2005, in the midst of Adelphia's financial collapse and bankruptcy.

<span class="mw-page-title-main">United States Penitentiary, Allenwood</span> Federal prison in Pennsylvania

The United States Penitentiary, Allenwood is a maximum security United States federal prison in Pennsylvania. It is part of the Allenwood Federal Correctional Complex and is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice.

Larry Quinn is an American ice hockey executive, businessman and politician, best known for his involvement with the Buffalo Sabres of the NHL. Quinn has had two stints in the Sabres organization, the first in the 1990s as team president, and the second in the mid-to-late 2000s as managing partner, minority owner, and de facto president. Quinn, in 2014, won election to Buffalo Public Schools' board of education.

The Sabres Hockey Network is the official radio network and production company of the Buffalo Sabres of the National Hockey League (NHL). The network is currently operated jointly by the Sabres and Audacy, Inc.

Russell Jerome Brandon is an American sports executive, and current CEO and President of the United Football League (UFL). Brandon is best known for his 21-year tenure in the front office of the Buffalo Bills of the National Football League.

<span class="mw-page-title-main">Federal Correctional Complex, Allenwood</span>

The Federal Correctional Complex, Allenwood is a federal prison complex for male inmates in Pennsylvania, United States. It is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice.

<span class="mw-page-title-main">MSG Western New York</span> Television channel

MSG Western New York is an American regional sports network that is a joint venture between MSG Entertainment and Hockey Western New York LLC. The channel is a sub-feed of MSG Network, with programming oriented towards the Western New York region, including coverage of the National Hockey League's Buffalo Sabres and the National Football League's Buffalo Bills. It replaced MSG Network on television providers in the Sabres' media market in 2016.

Mark Hamister was an American businessman and the Chairman and CEO of the Hamister Group, a Buffalo-based company specializing in hotels and assisted living residences with more than 500 employees and $80 million in annual revenues.

The Potter Leader-Enterprise is an American weekly newspaper serving Coudersport, Pennsylvania, with a circulation of over 6,000 copies. It is published weekly on Wednesdays. The paper is owned by Community Media Group, Inc.

<span class="mw-page-title-main">New York & Pennsylvania Railroad</span>

The New York & Pennsylvania Railroad (NYP) was a single track, shortline railroad running on a route described as east—west in the company's timetables, but closer to an arc: almost due south along Bennett's Creek from Canisteo through the hamlets of Greenwood, Rexville, and Whitesville, New York, southwest through Genesee, Pennsylvania to Oswayo, Pennsylvania, then northwest through Shinglehouse, Pennsylvania to Ceres, New York. In Canisteo trains made "a close connection" with "electric cars for Hornellsville". Trains connected in Canisteo with the Erie Railroad, with service to Buffalo and New York City; in Genesee with the Buffalo and Susquehanna Railroad, with service to Wellsville, New York, and in Ceres with the Pittsburg [sic], Shawmutt, and Northern Railroad, with service to Olean, New York, and points west. While the railroad did not serve Hornell, occasionally it did run special trains, using the Erie tracks. Its route was primarily in southwestern Steuben County, New York, and northern Potter County, Pennsylvania, with small portions in Allegany County, New York, and McKean County, Pennsylvania. Total track was 56.13 miles (90.33 km) main line and 7.69 miles (12.38 km) of sidings.

The Coudersport Giants were a minor league baseball team based in Coudersport, Pennsylvania. In 1905, the Giants played as members of the Class D level Interstate League, winning the league championship in their final season of play. Previously hosting the 1904 Coudersport minor league team of the independent Southern Tier League, Coudersport played home minor league games at Morgan Park.

The Olean Refiners were a minor league baseball team based in Olean, New York. From 1905 to 1908 and again from 1914 to 1916, Olean teams played exclusively as members of the Class D level Interstate League, winning the 1908 league championship. Olean played as the "Candidates" in 1908 and the "White Sox" in 1915 and 1916, winning a contested pennant in 1915. Olean hosted home minor league games at Interstate League Park. The "Refiners" nickname corresponds to the Oil industry in the Olean area in the era.

References

  1. "YaYa".
  2. "The Most Popular Person in Buffalo with Courage, Daring and a Touch of Magic, Sabres Owner John Rigas Reminds Us How to Dream". November 1998.
  3. "Whither the Texas hot?". Archived from the original on August 17, 2017.
  4. Randall, Mike (October 4, 2018). "Texas hot: a Wellsville tradition for 96 years". WKBW-TV. Retrieved October 4, 2018.
  5. "JOHN RIGAS". Archived from the original on June 5, 2004. Retrieved November 20, 2016.{{cite web}}: CS1 maint: unfit URL (link)
  6. James Bates, Sallie Hofmeister (May 16, 2002). "Cable Pioneer John Rigas Quits Under Fire as Adelphia CEO". LA Times. Retrieved October 17, 2015.
  7. John Rigs throws first pitch at Nitros game. Olean Times Herald. Retrieved June 15, 2016.
  8. "John Rigas Biography and Political Campaign Contributions". Campaign Money. Retrieved October 17, 2015.
  9. 1 2 "Judge: Free cancer-stricken Adelphia CEO John Rigas, convicted of fraud". Olean Times Herald . February 19, 2016. Retrieved February 19, 2016.
  10. "Bush denies bevy of pardons, commutations". United Press International. January 27, 2009.
  11. "Former Adelphia CEO in Allenwood". Muncy Luminary. November 22, 2011. Archived from the original on September 11, 2012. Retrieved December 12, 2011.
  12. "Adelphia's Rigas asks for release from prison". The Buffalo News . December 14, 2015. Retrieved November 20, 2016.
  13. Herald, BOB CLARK, Olean Times (June 14, 2016). "John Rigas throws first pitch at Nitros game" . Retrieved November 20, 2016.{{cite web}}: CS1 maint: multiple names: authors list (link)
  14. Rifkin, Glenn (September 30, 2021). "John J. Rigas, Cable TV Magnate Who Pillaged His Company, Dies at 96". The New York Times. Retrieved October 3, 2021.
  15. McCarthy, Robert J; Anderson, Dale (September 30, 2021). "John Rigas, disgraced cable tycoon, former Sabres owner, dies at 96". The Buffalo News. Retrieved October 3, 2021.
  16. Anderson, John (September 30, 2021). "Wellsville Legend John Rigas Dies at 96". The Wellsville Sun. Retrieved October 3, 2021.