Draft Remarks of Attorney General Alberto Gonzales: Adelphia Victims Press Conference

Today, the Justice Department has taken additional action to ensure that the defendants are forced to help compensate the victims for their loss.

First, the Justice Department has reached an agreement with John Rigas that obligates all members of the Rigas family to forfeit to the United States in excess of 95 percent of all the family’s assets. These assets include privately owned cable systems worth between 700 and 900 million dollars; all Adelphia securities owned by the Rigas family and its affiliated entities, valued at approximately 567 million dollars; and real estate holdings valued at approximately ten million dollars. In total, this represents the largest forfeiture ever made by individuals in a corporate fraud matter.

Second, today I am announcing the creation of the Adelphia Victim Compensation Fund to compensate the victims who lost money as the result of fraud at Adelphia. Under the terms of a second agreement reached in this matter, Adelphia Corporation will not be prosecuted for the actions of its executives but will incur two obligations: To continue to cooperate with the government – and to contribute 715 million dollars to this new fund.