Tyco Is Seeking Damages From Ex-CFO
EXETER, N.H.—Tyco Int’l Ltd. is seeking to force former CFO Mark Swartz to return millions of dollars he allegedly misappropriated from the company. Tyco has filed an arbitration demand with the American Arbitration Association and it disclosed in a filing Tuesday with Securities and Exchange Commission, according to Associated Press.
The SEC filing says Swartz “breached his fiduciary duties” as CFO and director and “misappropriated company funds and other assets.” Swartz was indicted along with former chairman and CEO Dennis Kozlowski in September for allegedly stealing $600 million from Tyco. They have pleaded innocent.
Tyco has sued Kozlowski, seeking reimbursement of tens of millions in unapproved loans to employees that later were forgiven. The company cannot bring a lawsuit against Swartz, but must seek arbitration under the severance agreement Tyco and Swartz reached in early August worth about $45 million.
Gary Holmes, a Tyco spokesman, said the arbitration proceeding is confidential and the company cannot release a copy of its demand against Swartz.
A source close to the company said the claim against Swartz is similar to a lawsuit filed against Kozlowski last month, although the amounts of money involved are smaller.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.