CEO Kozlowski convicted, faces 25 years.|
the first trial ended in a mistrial, when one juror was improperly contacted during
deliberation, a second jury convicted Tyco's ex-CEO Dennis Kozlowski and former
CFO, Mark H. Swartz, of defrauding nearly $600 million from the company to finance
and Swartz were accused of taking unauthorized pay and bonuses, abusing loan programs
and selling their company stock at inflated prices after lying about Tyco's finances.
The duo were convicted of grand larceny, falsifying business records, securities
fraud and other charges. Both are free on $10 million bail apiece pending an Aug.
2 pre-sentencing hearing. They each face up to 30 years in prison.
became the object of ridicule after it was revealed that the furnishings at his
Manhattan apartment included a $6,000 shower curtain and other extravagances that
brought the price of the place to more than $30 million. Why not? It wasn't his
how much of the assets will they be forced to return? Given the track record of
government prosecutors, it will likely be fractions of the amount defrauded. Why
should Kozlowski's estate benefit from ill gotten gains ? Perhaps prosecutors
should learn to be more aggressive in going after assets much like their counterparts
at the Internal Revenue Service ("IRS"). The IRS is notorious to trying
to collect in full all past due amounts plus compounded interest starting from
the time the incident first occurred. Why not place a lien on all assets and try
to recoup the entire $600 million plus an additional $20 million in annual interest
penalties from the time of the first infraction? In my opinion, it's the only
Updates after September 19, 2005:
Former Tyco CEO
Dennis Kozlowski and former Tyco CFO Mark H. Swarz were each sentenced up to 25
years in prison. Both are eligible for parole after 8 years and 4 months.
2005 Nelson Chin.
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