Motorola

Harvard, IL: (May-08-07) The US Securities and Exchange Commission filed charges against Motorola, alleging that it had improperly funneled cash to Adelphia Communications in 2001 through a purported marketing support agreement for set-top boxes. The SEC claimed that the case involved a "round trip" of cash between Motorola and Adelphia, which used the money to falsify its earnings for 2000 and 2001. Following an accounting scandal involving its founding Rigas family, Adelphia filed for Chapter 11 bankruptcy protection in June 2002. In 2004, former Adelphia chairman John Rigas and his son Timothy were convicted on several counts of fraud and conspiracy. The SEC ordered Motorola to pay disgorgement in the amount of $18 million and prejudgment interest in the amount of $7 million, for a total payment of $25 million. Motorola agreed to settle without admitting or denying any wrongdoing. [BROADCAST NEWSROOM: MOTOROLA FRAUD]

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Published on May-10-07