Tyco judge rejects partial verdict

Prosecution wanted him to ask jury whether it had reached any decisions

June 11, 2005|By BLOOMBERG NEWS

NEW YORK - The judge in the trial of L. Dennis Kozlowski and Mark H. Swartz, two former Tyco International Ltd. executives accused of looting the company, rejected a prosecution request yesterday that he seek a partial verdict in the case.

Assistant District Attorney Owen Heimer requested that New York State Supreme Court Justice Michael J. Obus ask the jury whether they had reached a verdict on some of the counts.

The request followed a note Thursday in which the jury indicated that it had reached verdicts on some counts but wondered whether it must deliver unanimous verdicts on all of them.

"The court is permitted to accept any verdicts that have been reached," Obus told the jury.

"At this point, I will simply direct that you resume all of your deliberations."

If the jury has a verdict on some counts, Obus could accept them and declare a mistrial for those on which they are deadlocked, or he could order further deliberations.

Thursday, a New York state judge in the same courthouse accepted 29 not guilty verdicts but declared a mistrial on four counts in the jury trial of former Bank of America Corp. broker Theodore C. Sihpol III.

Kozlowski, 58, Tyco's former chief executive, and Swartz, 44, the company's chief financial officer, are accused of making $542.4 million by taking unauthorized bonuses, abusing company loan programs and selling Tyco stock after misrepresenting its financial condition to investors.

They are also accused of altering the terms of a company relocation plan without board approval and improperly using loans for personal spending unrelated to relocation.

Kozlowski and Swartz are accused of 31 acts of grand larceny, stock fraud, falsifying business records and conspiracy.

They are being tried a second time because an earlier case ended in a mistrial last year when a juror publicly identified as a holdout said she had been threatened.

Five former Tyco directors testified that they never knew about, let alone approved, the disputed payments.

The defense said the awards were due Kozlowski and Swartz under the company's bonus formula and that Tyco director Philip M. Hampton, who died in 2001, knew about the transactions.

The defendants say they made no attempt to hide their actions from auditors or the board and made all necessary representations to investors.

The prosecutors allege that Kozlowski illegally took $95.7 million from the company and illegally made $280 million in sales of Tyco shares.

For Swartz, the government put the figures at $41.7 million and $125 million.

First-degree grand larceny carries a 25-year maximum prison term. Each man faces 12 counts of grand larceny.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.