Former chief executive Dennis Kozlowski and former finance chief Mark Swartz -- the faces of the scandal that nearly ruined Tyco International Ltd. -- have appealed their June 2005 convictions. The men were found guilty on 22 counts of grand larceny, falsifying business records, securities fraud and conspiracy in connection with looting the company, and have been serving prison sentences of up to 25 years. Prosecutors said the men gave themselves more than $150 million in illegal bonuses and loans, in addition to manipulating the company's stock price and making in millions more through illegal stock sales. In separate filings with the appellate division of the Supreme Court of the State of New York, lawyers for Kozlowski said that Tyco's pay-for-performance pay system entitled Kozlowski to his extraordinary compensation and gave their client leeway to spend the company’s dollars. Lawyers for Swartz questioned whether there was enough evidence to support charges that he took money that had not been authorized by Tyco’s directors, as well as requesting that the length of Swartz’s sentence be reconsidered. Tyco is in the process of reorganizing into three stand-alone companies, a move which should be completed by the first quarter of 2007.
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