Ex-Tyco Bosses Take Convictions To Supreme Court

Ex-Tyco Bosses Take Convictions To Supreme Court - 4/14/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

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Ex-Tyco Bosses Take Convictions To Supreme Court
Melissa Lipman

Securities Law 360. April 14, 2009
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EXCERPT: Dennis Kozlowski and Mark Swartz, the former Tyco International Ltd. executives convicted in 2005 of a massive accounting fraud, have asked the U.S. Supreme Court to overturn their criminal convictions based on a trial court's refusal to let the defendants see materials from the company's internal investigation into the scandal. Former CEO Kozlowski, 62, and former Chief Financial Officer Swartz, 48, filed a joint petition for certiorari with the high court Friday. The two argue that the case "presents a direct and increasingly frequent collision between bedrock values — a criminal defendant’s right to obtain evidence necessary for his defense versus a nongovernmental third party’s interest in being able to conduct investigations without fear of having to later divulge its files." In mid-October, the New York State Court of Appeals unanimously upheld the convictions by a jury that found the men guilty of fraud, grand larceny and other charges related to allegations that they stole more than $150 million from the publicly held manufacturing company and reaped $430 million more by secretly selling company shares in order to support extravagant lifestyles. The two executives were convicted in 2005 of all but one of the 23 counts against them, following a mistrial in 2004. As part of their sentencing, Kozlowski and Swartz were ordered to pay $240 million in fines and restitution. They have each served more than three years in prison since August 2005, when they were sentenced to between about eight years and 25 years. In September, lawyers for the former executives asked New York's highest appeals court for a new trial, taking issue with Tyco's internal investigation of its financial transactions. But the seven judges of the appeals court rejected the defendants' arguments, as well as a bid to challenge the constitutionality of the fines imposed on Swartz and Kozlowski.

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