Kozlowski guilty in Tyco fraud

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The Independent Online

Dennis Kozlowski, the former chief executive of Tyco was yesterday finally found guilty of looting $96m (£53m) from the the American security systems giant.

Dennis Kozlowski, the former chief executive of Tyco was yesterday finally found guilty of looting $96m (£53m) from the the American security systems giant.

Mark Swartz, Tyco's former chief financial officer, was also convicted in the trial, the second time the pair had faced trial on the allegations of grand larceny and securities fraud. They could each face 25 years in prison.

The first trial was full of revelations of their lavish lifestyles, including the purchase on the company account of gold thread shower curtains and ornate umbrella stands for Kozlowski's apartment in New York.

This case ended in a mistrail when one juror reported receiving a menancing letter.

In the second trial government lawyers concentrated far more on the details of the two executives' fraud, which included a conspiracy to pay themselves millions of dollars in special bonuses in 1999, 2000 and 2001 without the knowledge of Tyco's compensation committee or its board of directors, including forgiving millions of dollars of their own loans to the company.

The unauthorised bonuses were in addition to tens of millions of dollars they were paid annually as Tyco's top executives, the government said.

A follow-up hearing has been set for 2 August. Lawyers for Swartz and Kozlowski, who will remain free on bail, said they would appeal.

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