In a trial that will be remembered for its tales of bloated extravagance, Tyco International Ltd.'s former chief executive and finance chief received sentences of up to 25 years in prison. The men will be eligible for parole after serving eight years and four months.
Tyco's former chief executive L. Dennis Kozlowski, 58, and former finance chief Mark Swartz, 44, were found guilty in June on 22 counts of grand larceny, falsifying business records, securities fraud and conspiracy -- actions which prosecutors said involved both men giving themselves more than $150 million in illegal bonuses and forgiving loans to themselves, besides manipulating the company's stock price.
A jury deliberated for 11 days after the four-month trial. The original proceedings ended in a mistrial.
New York State Supreme Court Justice Michael Obus ordered Kozlowski and Swartz to pay a total of $134 million in restitution; and in addition, Kozlowski and Swartz were each fined $70 million and $35 million, respectively.
Kozlowski was employed by Tyco from 1975 until 2002, and Swartz worked for the company between 1991 and 2002. They testified that they never stole anything from Tyco or received anything from the company to which they were not entitled. A centerpiece of their defense was that unlike WorldCom and Enron, Tyco continued to thrive after the scandal.
Tyco, which has about 250,000 employees and $40 billion in annual revenues, makes electronics and medical supplies and owns the ADT home security business.
