Adelphia Arrests a Distraction from Market Woes

With the recent arrest of Adelphia Communications Corporation’s executives, the Bush administration is attempting to boost American confidence in its ability to enforce the law and manage the economy, says Dr. Susan Turner, who teaches business ethics at UVic. Her comments are in reaction to the arrest of Adelphia’s founder, his two sons, and two other executives on conspiracy and fraud charges. “In a climate where a lot of people are getting skeptical about the U.S. government’s willingness to punish corporate wrongdoing, the fact that the Rigases have been charged may lay some of those concerns to rest, at least temporarily,” says Turner. “And it appears that the market may have responded favourably.” Turner says that putting these arrests in the media spotlight is primarily a political move by the Republicans. “There might not be any more evidence in this case than there is against corporate wrongdoers of days gone by, and maybe back then the justice department wouldn’t have arrested anyone. But it would be politically imprudent not to prosecute in the present climate. Of course, charging the Rigases with fraud and conspiracy doesn’t mean they’re going to jail.”

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