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Tyco two get up to 25 years' jail

Date Class
19th Sep 2005 Fraud Investigation
 
Details
Two former bosses of US manufacturer Tyco have been sentenced to up to 25 years in jail for stealing more than $150m (82m) from the company.

Former Tyco chief executive Dennis Kozlowski and finance chief Mark Swartz were taken from the court in handcuffs.

They were also ordered to repay most of the money, which they spent on expensive jewellery, luxury apartments and giant $2m Mediterranean parties.

The pair, who denied the charges, were convicted in June at their retrial.

Their first trial collapsed in April 2004 after a juror received a threatening phone call and letter. Both were heard in New York.

Judge Michael Obus sentenced the pair to between 8 1/3 years and 25 years.

The judge ordered them to pay $134m in restitution. In addition, Kozlowski was fined $70m and Swartz $35m.

Kozlowski, 58, and Swartz, 44, have said they will appeal against the verdicts.

During the trial, the court heard that the former bosses took the money through secret loans that were then simply forgotten, as well as unauthorised bonuses.

Examples of their lavish lifestyle quoted in court included a $2m toga party on a Mediterranean island for Kozlowski's wife's birthday and an $18m apartment in Manhattan.

Tyco employs 250,000 people in 2,000 locations around the world and sells electronic, healthcare, and plastics supplies.

 

 

 


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