Ex-Tyco CEO Kozlowski Found Guilty

[cKGunslinger]

CNN/Money Link

NEW YORK (CNN/Money) - Former Tyco CEO Dennis Kozlowski and ex-CFO Mark Swartz were found guilty Friday of looting Tyco of $150 million in one of the biggest wins yet for prosecutors pursuing corporate crime.

Kozlowski, 58, and Swartz, 44, were each found guilty on 22 counts of grand larceny and conspiracy, falsifying business records and violating general business law. They were each acquitted on one count.

A jury of six men and six women returned the verdict after 11 days of deliberations following a trial in a New York State court that lasted over four months.

After the verdicts were read Friday afternoon, Dennis Kozlowski's face was scarlet red and his daughter buried her face in her hands, according to an eyewitness. Swartz' wife appeared to be in shock and Kozlowski's wife was crying.

This was the former executives' second trial -- the first ended in a mistrial in April 2004 after a juror claimed she had received threatening phone calls. The juror was reportedly the only one holding out for an acquittal.

Legal experts said Friday they weren't surprised to see guilty verdicts this time around.

...

After the verdict, the government requested mandatory jail time of 15 to 30 years in state prison.

New York State Supreme Court Judge Michael Obus allowed Kozlowski and Swartz to remain free until their sentencing, which he set for Aug. 2.

The Tyco case differs in key respects from other recent high-profile trials involving once prominent corporate executives.

Former CEOs like Bernard Ebbers of WorldCom, Richard Scrushy of HealthSouth, and Kenneth Lay of Enron are accused of orchestrating massive accounting frauds at their respective companies.

The Tyco scandal did not involve charges of accounting fraud. The trial of Kozlowski and Swartz was about improper use of company funds -- in other words, greed.

Both Kozlowski and Swartz maintained that Tyco's board of directors and its auditors were aware of and authorized the bonuses they received as part of their compensation packages.

Five former Tyco directors testified they never knew of the disputed payments and never approved of them.

Kozlowski and Swartz face time in state prison, which tends to be grittier, with more violent inmates, than the federal system.

It may take a while, but justice often does get served. :thumbsup:

 

[gsaldivar]

:thumbsup:

 

[chambersc]

REALLY?! And I thought it was normal to buy a $6000 shower curain with company funds. A monkey could have found these two nuts guilty.

 

[Tab]

These are the companies I really hate, they make products for those who can't complain.

Nickoledian and the "others" are so fvcking evil.... Heh, anyone seen the "Proud Family" RIAA episode? Thats fvcking sick.

 

[gsaldivar]

Originally posted by: chambersc
REALLY?! And I thought it was normal to buy a $6000 shower curain with company funds. A monkey could have found these two nuts guilty.

:roll:

 

[KK]

Originally posted by: chambersc
REALLY?! And I thought it was normal to buy a $6000 shower curain with company funds. A monkey could have found these two nuts guilty.

Too bad they weren't tried in Kaliforna, huh. They got a bunch of monkeys in the jury pools.

 

[PatboyX]

Originally posted by: KK

Originally posted by: chambersc
REALLY?! And I thought it was normal to buy a $6000 shower curain with company funds. A monkey could have found these two nuts guilty.

Too bad they weren't tried in Kaliforna, huh. They got a bunch of monkeys in the jury pools.

i dont know, these guys had cash but they werent Famous-famous. they might have still been found guilty.

 

[ValuedCustomer]

Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

 

[nergee]

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

 

[nageov3t]

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

what does the Bush administration have to do with any of this?

 

[ntdz]

Good.

 

[ValuedCustomer]

Originally posted by: loki8481

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

what does the Bush administration have to do with any of this?

Haven't you heard? All that?s "bad" in the world is a direct result of George Bush and everything "good" in the world is sheer coincidence and absolutely unrelated to GW.. c'mon man, catch up!

 

[Sysbuilder05]

Originally posted by: ValuedCustomer

Originally posted by: loki8481

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

what does the Bush administration have to do with any of this?

Haven't you heard? All that?s "bad" in the world is a direct result of George Bush and everything "good" in the world is sheer coincidence and absolutely unrelated to GW.. c'mon man, catch up!

And...rewind a decade and put Clinton's name in place of George Bush. Uhhh...sound familiar??

 

[Zebo]

Meh.. it's the investors fault ...letting your CEO's rip you off like that. Why vest? Why not check them out? Cavet emptor. Right?

 

[Zebo]

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

:roll: This is state court. the SEC and Feds havnt done shat... so ya current admin is still dragging it feet.

 

[1EZduzit]

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

When they put Bush contributor Ken Lay and his crowd in jail for 20 years, then come back with the smart ass remarks about "the current administration being soft on big-business corruption".

 

[ValuedCustomer]

Originally posted by: 1EZduzit

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

When they put Bush contributor Ken Lay and his crowd in jail for 20 years, then come back with the smart ass remarks about "the current administration being soft on big-business corruption".

What exactly are you attempting to mean/infer?

 

[1EZduzit]

Originally posted by: ValuedCustomer

Originally posted by: 1EZduzit

Originally posted by: nergee

Originally posted by: ValuedCustomer
Yep, more proof of the current Administration being soft on big-business corruption.. er.. I mean.. uh.. never mind.

I was thinking the same thing.................................

When they put Bush contributor Ken Lay and his crowd in jail for 20 years, then come back with the smart ass remarks about "the current administration being soft on big-business corruption".

What exactly are you attempting to mean/infer?

I thought it was obvious? The exact opposite of what you were trying to infer. If that's not clear enough for you then don't blame me.