- Jun 5, 2000
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LAWYERS TOLD Manhattan Supreme Court Judge Michael Obus at a hastily called hearing late on Tuesday that Kozlowski is flat broke and cannot access bank accounts because they are frozen.
?He can?t even go to an ATM machine because all of his assets are blocked,? said Kozlowski?s lawyer, Stephen Kaufman. ?He has many friends on the outside but not the kind of friends who have this kind of money.?
At last week?s arraignment, the judge released Kozlowski on a $100 million personal recognizance bond that was to be secured by $10 million in personal assets. Tyco?s former chief financial officer, Mark Swartz, was released on a $50 million bond, secured by $5 million in personal funds.
Lawyers for Swartz also said he couldn?t make bail.
Both men were ordered to come up with the necessary funds by Thursday or face time at Riker?s Island, one of the nation?s toughest jails. The island near LaGuardia Airport in the East River is the largest U.S. penal colony.
Kaufman said Kozlowski?s ex-wife had agreed to post her $10 million home in Greenwich, Connecticut, but lead prosecutor John Moscow objected, saying the house and could be the result of the former CEO?s alleged criminal conduct.
Moscow said the defendants must come up with assets that were not gained from the alleged criminal conduct they are charged with.
A third defendant, Mark Belnick, charged with falsifying business records to cover up $14 million in improper loans from Tyco, was released last week on an unsecured personal recognizance bond of $1 million.
Prosecutors froze $600 million of Kozlowski assets ?mostly cash and securities,? Moscow said. That means the defendants cannot use this money as collateral toward their bail.
And Tyco is in the process of seizing most, if not all of Kozlowski?s assets, including a $17 million Fifth Avenue apartment, a $7 million Park Avenue apartment he turned over to his ex-wife, a $5 million Nantucket home and a $30 million compound in Boca Raton, Florida.
Swartz also allegedly used company money to invest in sports teams and buy expensive jewelry while Kozlowski threw a $2.1 million birthday party for his wife in Sardinia, Italy.
Other alleged unauthorized expenses incurred by Kozlowski include $6,000 for a shower curtain, a $15,000 umbrella stand, a $6,300 sewing basket and $445 for a pin cushion, among other extravagant purchases.
?He can?t even go to an ATM machine because all of his assets are blocked,? said Kozlowski?s lawyer, Stephen Kaufman. ?He has many friends on the outside but not the kind of friends who have this kind of money.?
At last week?s arraignment, the judge released Kozlowski on a $100 million personal recognizance bond that was to be secured by $10 million in personal assets. Tyco?s former chief financial officer, Mark Swartz, was released on a $50 million bond, secured by $5 million in personal funds.
Lawyers for Swartz also said he couldn?t make bail.
Both men were ordered to come up with the necessary funds by Thursday or face time at Riker?s Island, one of the nation?s toughest jails. The island near LaGuardia Airport in the East River is the largest U.S. penal colony.
Kaufman said Kozlowski?s ex-wife had agreed to post her $10 million home in Greenwich, Connecticut, but lead prosecutor John Moscow objected, saying the house and could be the result of the former CEO?s alleged criminal conduct.
Moscow said the defendants must come up with assets that were not gained from the alleged criminal conduct they are charged with.
A third defendant, Mark Belnick, charged with falsifying business records to cover up $14 million in improper loans from Tyco, was released last week on an unsecured personal recognizance bond of $1 million.
Prosecutors froze $600 million of Kozlowski assets ?mostly cash and securities,? Moscow said. That means the defendants cannot use this money as collateral toward their bail.
And Tyco is in the process of seizing most, if not all of Kozlowski?s assets, including a $17 million Fifth Avenue apartment, a $7 million Park Avenue apartment he turned over to his ex-wife, a $5 million Nantucket home and a $30 million compound in Boca Raton, Florida.
Swartz also allegedly used company money to invest in sports teams and buy expensive jewelry while Kozlowski threw a $2.1 million birthday party for his wife in Sardinia, Italy.
Other alleged unauthorized expenses incurred by Kozlowski include $6,000 for a shower curtain, a $15,000 umbrella stand, a $6,300 sewing basket and $445 for a pin cushion, among other extravagant purchases.
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