June 18, 2005
Tyco CEO and CFO Convicted
Dennis Lozlowski and Mark Swartz, the ex-CEO and ex-CFO of Tyco were found guilty on all but one count (23 in total) on Friday, June 17, 2005. The trial took four months and was the second trial -- the first ended in a mistrial in April of 2004. There were guilty verdicts on 12 counts of grand laceny, 1 count of consipracy, 1 count of illegal stock sales, and 8 counts of making false filings. The 1 count that failed was also a false filings allegation.
Court watchers say the prosecutors learned from the first trial and their case was better focused and organized. Kozlowski testified in the second trial and not the first. Swartz testified in both trials. One of the jurors, Juror No. 4, from the first trial sat in on the second and was dismayed by the verdict. She thought they were both innocent of all charges.
Testimony in the case on the formalities of the board meetings was shocking for a muli-million dollar, publicly traded company. The board rarely took accurate minutes and some minutes were drafted before the meetings were held.
Both defendants still face tax fraud charges and their former company faces a tsumani of private suits by shareholders. Tyco's new management is also considering suits against Kozlowski and Swartz. The litgation will take years to complete.
June 18, 2005 | Permalink
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