Former Tyco Heads Found Guilty!

ISiddiqui · 06-17-2005, 02:16 PM

15-30 in state prison sounds good. No Camp Cupcake for these boys. Hopefully sentancing gives him a long time in a cold cell:

http://money.cnn.com/2005/06/17/news...ex.htm?cnn=yes

Ex-Tyco CEO Kozlowski found guilty

Second trial ends in guilty verdicts for former Tyco chief and the company's ex-CFO Swartz.
June 17, 2005: 3:02 PM EDT


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NEW YORK (CNN/Money) - Former Tyco CEO Dennis Kozlowski and ex-CFO Mark Swartz were found guilty Friday of looting Tyco of $150 million worth of undeserved bonuses and secretly forgiven loans.

They were also charged with misrepresenting Tyco's financial condition in order to inflate the company's share price and then sell $575 million in company shares and options.

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

The executives' first trial ended in a mistrial in April 2004.

After the verdicts were read, 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.

The government requested mandatory jail time of 15 to 30 years in state prison.

Both men were released on their own recognizance Friday.

For an update on Tyco and other high-profile corporate scandals, click here.

Peregrine · 06-17-2005, 02:21 PM

Nice to see this. Some object lessons go a long way in keeping corporate executives from getting too drunk on their own power.

Logan · 06-17-2005, 02:26 PM

One of my professors at RU was the former COO of Tycom, the telecommunications wing of Tyco and met with Kozlowski on a regular basis. She got out before all the bad stuff went down, but the stories she has about the ridiculous spending, and how Dennis always viewed Tyco as "his" company were crazy.

sterlingice · 06-17-2005, 02:33 PM

Too bad they don't send him to Leavenworth. I bet they love white collar crime people there.

SI

Galaxy · 06-17-2005, 02:34 PM

Quote:

Originally Posted by Logan

and how Dennis always viewed Tyco as "his" company were crazy.

How did he view it as "his" company? Will all his possessions be re-possed and given back to Tyco to sell and keep the profits?

KWhit · 06-17-2005, 02:35 PM

That is outstanding. I was a consultant at Tyco for almost 2 years right before the story of the scandal broke.

I got hammered in the stock market because I had just bought a bunch of Tyco stock right before it happened. Lost about 75% of my investment in the span of 2 days.

I hope they send him to a federal-pound-him-the-ass prison.

Buzzbee · 06-17-2005, 02:36 PM

Flasch 'see, I told you all CEO's are crooked' comment in 5...4...3...2...1...

Buzzbee · 06-17-2005, 02:37 PM

Dola - And I agree with Kwhit's hopes that they get sent to an rectal expansion prison.

Flasch186 · 06-17-2005, 02:37 PM

zero....not "all" but a lot....these guys were too obvious. its the stuff you dont know about (which some say we can't debate because if we dont know about it, it must not exist) that we should worry about.

Galaxy · 06-17-2005, 02:38 PM

Quote:

Originally Posted by Buzzbee

Flasch 'see, I told you all CEO's are crooked' comment in 5...4...3...2...1...

Beat me to it....

timmynausea · 06-17-2005, 02:39 PM

These guys were pretty wealthy. What is the cut off, at this point, for being rich enough to be considered above the law? It seems like it is moving up.

ISiddiqui · 06-17-2005, 02:46 PM

Quote:

Originally Posted by KWhit

I hope they send him to a federal-pound-him-the-ass prison.

State prision... so the article says.

Logan · 06-17-2005, 02:51 PM

Quote:

Originally Posted by Galaxy

How did he view it as "his" company? Will all his possessions be re-possed and given back to Tyco to sell and keep the profits?

Not sure about your 2nd question...but from what I heard, Kozlowski treated Tyco as if it was "his" company...as in, he was the one who put in the hard work, and therefore was able to use the company's profits like they were his own. This would be fine if he owned Tyco in a private sense, but the problem is that Tyco was a public company which is owned by millions of shareholders. He may have been the one making the decisions that made all these people rich, but the company's profits weren't something he could delve into for his own personal interests (like his wife's multi-million dollar birthday party, his $35,000 solid gold umbrella rack for his house, etc).

Galaxy · 06-17-2005, 03:20 PM

Quote:

Originally Posted by Logan

Not sure about your 2nd question...but from what I heard, Kozlowski treated Tyco as if it was "his" company...as in, he was the one who put in the hard work, and therefore was able to use the company's profits like they were his own. This would be fine if he owned Tyco in a private sense, but the problem is that Tyco was a public company which is owned by millions of shareholders. He may have been the one making the decisions that made all these people rich, but the company's profits weren't something he could delve into for his own personal interests (like his wife's multi-million dollar birthday party, his $35,000 solid gold umbrella rack for his house, etc).

Thanks, by my second question, I mean, are all his possessions such as the penthouse/apartment, the curtains, the cars/houses, ect. going to be given to Tyco, or will he somehow keep them?

06-17-2005, 02:21 PM	#2
Peregrine Pro Starter Join Date: Oct 2001 Location: Cary, NC	Nice to see this. Some object lessons go a long way in keeping corporate executives from getting too drunk on their own power. __________________ Your guilty conscience may force you to vote Democratic, but deep down inside you secretly long for a cold-hearted Republican to lower taxes, brutalize criminals, and rule you like a king. --Sideshow Bob

06-17-2005, 02:33 PM	#4
sterlingice Hall Of Famer Join Date: Apr 2002 Location: Back in Houston!	Too bad they don't send him to Leavenworth. I bet they love white collar crime people there. SI __________________ Houston Hippopotami, III.3: 20th Anniversary Thread - All former HT players are encouraged to check it out! Janos: "Only America could produce an imbecile of your caliber!" Freakazoid: "That's because we make lots of things better than other people!"

06-17-2005, 02:36 PM	#7
Buzzbee College Starter Join Date: Jun 2002	Flasch 'see, I told you all CEO's are crooked' comment in 5...4...3...2...1... __________________ Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it. - Lou Holtz

06-17-2005, 02:37 PM	#8
Buzzbee College Starter Join Date: Jun 2002	Dola - And I agree with Kwhit's hopes that they get sent to an rectal expansion prison. __________________ Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it. - Lou Holtz

06-17-2005, 02:37 PM	#9
Flasch186 Coordinator Join Date: May 2002 Location: Jacksonville, FL	zero....not "all" but a lot....these guys were too obvious. its the stuff you dont know about (which some say we can't debate because if we dont know about it, it must not exist) that we should worry about. __________________ Jacksonville-florida-homes-for-sale Putting a New Spin on Real Estate! ----------------------------------------------------------- Commissioner of the USFL USFL Last edited by Flasch186 : 06-17-2005 at 02:46 PM.

06-17-2005, 02:26 PM	#3
Logan Head Coach Join Date: Oct 2000 Location: NYC	One of my professors at RU was the former COO of Tycom, the telecommunications wing of Tyco and met with Kozlowski on a regular basis. She got out before all the bad stuff went down, but the stories she has about the ridiculous spending, and how Dennis always viewed Tyco as "his" company were crazy.

06-17-2005, 02:35 PM	#6
KWhit Coordinator Join Date: Jan 2003 Location: Conyers GA	That is outstanding. I was a consultant at Tyco for almost 2 years right before the story of the scandal broke. I got hammered in the stock market because I had just bought a bunch of Tyco stock right before it happened. Lost about 75% of my investment in the span of 2 days. I hope they send him to a federal-pound-him-the-ass prison.

06-17-2005, 02:39 PM	#11
timmynausea College Starter Join Date: Dec 2002	These guys were pretty wealthy. What is the cut off, at this point, for being rich enough to be considered above the law? It seems like it is moving up.

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