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.
