TOPICS > Economy

Tyco Executives Convicted of Stealing From Company

BY Admin  June 17, 2005 at 4:45 PM EST

Kozlowski, 58, was Tyco’s CEO and Swartz, 44, was the conglomerate’s finance chief. Both men could face up to 30 years in prison.

Prosecutors said the pair stole from the company in order to finance their lavish lifestyles, including a $2 million Mediterranean birthday party for Kozlowski’s wife. The pair were also accused of using fraudulent accounting practices to artificially boost the value of the company’s stock.

Kozlowski and Swartz testified that they were unaware that any of their actions, such as accepting unauthorized cash bonuses and loans from the company, were illegal. Kozlowski himself testified that he never abused company loan programs and that his failure to disclose large sums of personal income was an innocent mistake.

Kozlowski and Swartz were previously tried on the same charges in April 2004 but the judge declared a mistrial after learning that a juror had received a threatening letter.

On Friday the Manhattan State Supreme Court jury, after an 11 day deliberation, found the pair guilty on 22 counts. They were each acquitted on one count.

“We are disappointed, and we will deal with this on appeal,” said Swartz’s attorney, Charles Stillman.

Over the protest of prosecutors, the two men were released on $10 million bail, pending a pre-sentencing hearing, which is scheduled for August 2.

Kozlowski worked at Tyco from 1975 until 2002. Swartz joined Tyco in 1991 and left in 2002.