2 min read

NEW YORK (AP) – A jury began deliberating Thursday in the case against two former Tyco executives accused of looting the company of $600 million and spending it on such things as vacation homes and a toga party on a Mediterranean island.

L. Dennis Kozlowski, former chief executive, and Mark H. Swartz, former chief financial officer, were charged with a total of 32 counts of grand larceny, falsifying business records and violating state business laws. They could get up to 30 years in prison.

During the five-month trial, the jury heard 47 witnesses and saw more than 700 exhibits that included two videotapes of the birthday bacchanal on Sardinia and an $18 million Fifth Avenue apartment that contained a now-infamous $6,000 shower curtain in the maid’s room.

The jury ended deliberations for the day without reaching a verdict and was scheduled to return on Friday.

The jurors sent out a note less than 10 minutes after they started deliberations, asking for a chart prosecutors used during summations to list 68 overt acts they say the defendants committed as part of their alleged conspiracy. State Justice Michael Obus told the jurors he would read any or all of the list if they requested.

Tyco, which has about 270,000 employees and $36 billion in annual revenue, makes electronics and medical supplies and owns the ADT home security business.

Prosecutors said Kozlowski, 57, and Swartz, 43, used Tyco as their personal piggy bank, stealing $170 million by taking unauthorized bonuses and abusing company loan programs. They were also accused of stealing $430 million by pumping up Tyco’s stock price and selling their shares from 1995 through 2002.

The defense argued that the two men earned every dime and that the board of directors and the company’s auditors knew about the compensation and never objected. Kozlowski once made more than $100 million in one year.

The case was part of a spate of corporate scandals that shook Wall Street and alarmed Washington. During the trial, federal prosecutors brought charges against former executives of WorldCom and Enron, and Martha Stewart was convicted in a stock scandal just blocks away.

AP-ES-03-18-04 1736EST


Comments are no longer available on this story