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Sarbanes-Oxley News & Developments
Opening Arguments vs Ex-Tyco ExecsCase against Kolowski and Swartz is about lying, cheating and stealing.
> > Former Tyco International Ltd. Chairman Dennis Kozlowski and his finance chief lied, stole and cheated for several years. The case against Kolowski and Mark Swartz is expected to last three to four months. The two men are accused of looting some $600 million from Tyco through unauthorized pay and illicit stock sales.
Kozlowski and Swartz were protrayed as the gatekeepers of all the information that flowed to the board of directors. They recruited employees and corrupted other employees to carry out their crimes. The two ex-executives, while building Tyco, raided Tyco assests to buy homes, yachets, jewelry and paintings. The ex-executives allegedly used hundreds of wire transfers, interspersed with thousands of Tyco transfers, to take money out of the company corporate accounts to fund their lavish lifestyles. In one example, Kozlowski threw his wife a party on the island of Sardinia. Half of the bill for the party was given to Tyco shareholders: $1 million.
Source: CNN Money
Published:2003-10-08
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