White Collar Crime
Tyco Execs Lose Appeal
Posted Nov 16, 2007 7:39 AM CDT
By Debra Cassens Weiss
A New York appeals court has upheld the convictions of Tyco International ex-CEO Dennis Kozlowski and-ex CFO Mark Swartz.
The Appellate Division found the evidence was sufficient to support their convictions for taking unauthorized bonuses, the New York Law Journal reports. The executives were convicted in June 2005 of larceny, securities fraud, conspiracy and falsifying business records based on allegations they paid themselves $100 million from company coffers.
The executives had argued they were entitled to the money. Kozlowski had also challenged trial testimony by lawyer David Boies, who had been hired to investigate Tyco finances, the Wall Street Journal reports (sub. req.). That tack also failed.
The court said in its ruling yesterday that Boies’ testimony about a statement by Swartz that inculpated Kozlowski should not have been admitted, but the error was harmless. Boies had testified that Swartz told him that Kozlowski had authorized erasing their $37.5 million loan.
The court also said other challenges to Boies’ testimony were without merit. “The record fails to support their assertion that his testimony, or any summation comments by the prosecutor, gave the jury the impression that Boies had drawn a conclusion, based on his investigation and expertise, that defendants were guilty,” the court said.