Ex-CEO Convicted of Looting Tyco
A jury has found the former CEO of Tyco Int’l Ltd. guilty of stealing more than $150 million from the company. The jury rendered guilty verdicts for both Dennis Kozlowski and former Tyco CFO Mark Swartz after 11 days of deliberations. Kozlowski – convicted of grand larceny, securities fraud and eight of nine counts of falsifying business records on June 17- faces 25 years in prison during an Aug. 2 sentencing.
Tyco, the parent company of such Tyco Fire and Security properties as ADT and Simplex Grinnell, has steadily recovered from debts built up by Kozlowski through a program of restructuring. That has included the divestment of several security properties including Sonitrol, National Alarm Computer Center (NACC) and Tri-Ed Distribution.
In a statement, Tyco spokesman David Polk said the company has left the Kozlowski era behind. “As the victim of the crimes that were prosecuted, Tyco has worked closely with the District Attorney’s Office,” Polk said. “Tyco will continue to pursue its own civil actions against Mr. Kozlowski and other former company officials.”
Kozlowski became Tyco CEO in July 1992 after serving as the company’s COO since 1989. At the time, Tyco was only in the fire protection and large valve markets. That changed in July 1997 after Tyco merged with ADT and built up its fire and security division.
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