NEW YORK (Dow Jones/AP) – The jury continued its deliberations for a fourth day Wednesday without reaching a verdict in the larceny trial of Mark A. Belnick, Tyco International Ltd.’s former top lawyer.
The panel of eight men and four women asked for additional instruction on the grand larceny charge against Belnick. The jury also asked to again hear the court’s instruction on the burden of proof and reasonable doubt.
The jury indicated it was having a disagreement about whether the larceny charge related to a $10.6 million relocation loan from Tyco that Belnick used to buy a home in Utah and a retention agreement he entered into with the company that would have given him enough cash to pay it back.
Prosecutors say Belnick was improperly granted a bonus of cash and stock worth up to $17 million by former chief executive L. Dennis Kozlowski for his work on an informal inquiry by the Securities and Exchange Commission into Tyco’s accounting.
“The grand larceny charge set forth in count one charges only the theft of what has been referred to as the SEC bonus,” New York State Supreme Court Justice Michael J. Obus told the jury.
Belnick, 57 years old, is on trial in New York State Supreme Court in Manhattan, charged with grand larceny, securities fraud and falsifying business records. He faces up to 25 years in prison on the most serious charge of grand larceny. He has denied wrongdoing.
The government also claims he failed to disclose more than $14 million in relocation loans on his directors-and-officers questionnaire while working as the Bermuda conglomerate’s chief counsel from 1998 to 2002. The loans were used to buy a Manhattan apartment and the Utah home.
The defense claims Belnick believed Kozlowski was the only person who could set his compensation. Also, Belnick testified that Mark H. Swartz, Tyco’s former financial chief, told him the company had received legal advice that relocation loans were in the “ordinary course of business” and didn’t need to be disclosed.
Kozlowski and Swartz were tried earlier this year on charges of stealing $600 million from Tyco. Their first trial ended in a mistrial in May after a juror received a menacing letter. They are expected to be retried in January.
Tyco, based in Bermuda but with U.S. headquarters in West Windsor, N.J., makes products ranging from telecommunications equipment to home alarm systems.
In 2003, the corporation had more than 250,000 employees and sales of about $36 billion.
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