Adelphia Probed for Related-Party Deals - TheStreet

Federal investigators are reportedly looking into the relationship between

Adelphia Communications


and an upstate New York furniture store owned by its controlling Rigas family.

The probe is part of a widening investigation by the U.S. attorney's offices in New York and Pennsylvania into alleged related-party transactions and accounting irregularities at the embattled cable company,

The Wall Street Journal


The story cited an office manual that allegedly directed Adelphia managers to buy furniture from Eleni Interiors in Olean, N.Y., a small store which, according to company documents, is owned and managed by the Rigas family. The company wouldn't comment on the probe, the story said.

Investigators are also looking into whether Adelphia funded a golf course built by the Rigas family and an Adelphia agreement for timber rights to land owned by the Rigases, the story said, citing people familiar with the situation. Adelphia is expected to detail its related-party transactions in a regulatory filing later this week.

Adelphia's stock has been halted for several days during which the company's founder, John J. Rigas, and his son, Timothy, resigned as chief executive and chief financial officer. On Sunday its vice president of finance for the last 18 years, Jim Brown, also resigned.