Settlement In Action Against Former Tyco Officer

The Commission today announced that  it  had  submitted  to  the  U.S. District Court for the  Southern  District  of  New  York  a  proposed settled Final  Judgment  as  to  Defendant  Edward  Federman,  in  the Commission's previously filed civil injunctive action against Federman and two  other  former  executives  of  Tyco  International  Ltd.  The proposed settlement is based on the allegations  in  the  Commission's complaint concerning Federman's involvement in  fraudulent  accounting practices at Tyco in violation of the federal securities laws.  Without admitting or  denying  the  allegations  in  the  Commission's complaint, Federman consented to the entry of a  final  judgment  that  would permanently enjoin him  from  violating  the  corporate  record-keeping provisions of the federal securities laws and from aiding  and abetting  violations  of  the  antifraud,  periodic   reporting,   and   corporate record-keeping provisions. The proposed final judgment would also order Federman to pay disgorgement in the amount  of  $1,651,064, plus prejudgment interest thereon in the amount of $799,693.10, and  a civil penalty in the amount of  $200,000.  Finally,  pursuant  to  the proposed final judgment, Federman would be barred from serving  as  an officer or director of a public company for a period of five years.  Edward Federman was, from 1999 until his resignation  in January 2001, the  Executive  Vice  President  and  Chief Financial Officer of Tyco's Electronics division.