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Running head: ADELPHIA COMMUNICATIONS CORPORATION SCANDAL 1
Adelphia Communications Corporation Scandal
Sheewane Davis
Strayer University
Professor Powell
January 19, 2023
ADELPHIA COMMUNICATIONS CORPORATION SCANDAL 2
In Senator Sarbane’s own words, the problems that led to the creation of SOX were
“inadequate oversight of accountants, lack of auditor independence, weak corporate governance
procedures, stock analysts’ conflict of interests, inadequate disclosure provisions, and grossly
inadequate funding of the Securities and Exchange Commission (U.S. Securities and Exchange
Commission, 2002).” Senator Sarbanes intentions were good and it create an oversight that
would deter financial fraud but it just wasn’t enough. Even after the “Three Big Scandals” from
2000 to 2002 Enron, Tyco, and Worldcom who were the original cause of SOX coming about
Adelphia Communication Corporation took the cake in 2004. Looking at Adelphia one would
believe that the SOX act was created for all other organizations and excluding theirs. As a
“family owned” corporation the Rigas family did everything an organization should never do and
that is mix one’s personal finances with those of the organization. The SEC called Adelphia’s
