SEC Settles Fraud Case With Former Tyco Executives
July 14 2009 - 6:27PM
Dow Jones News
Former Tyco International (TYC)executives L. Dennis Kozlowski
and Mark H. Swartz have been in jail since 2005, but on Tuesday
federal securities regulators officially barred them from the
business.
In a press release, the Securities and Exchange Commission said
it had entered final judgments against Kozlowski, the former chief
executive, and Swartz, the former chief financial officer, for
their roles in the massive accounting fraud.
The judgments bar the men for life from serving as a director of
a public company and enjoin them from violating securities laws.
The SEC had accused them in its civil case of failing to disclose
hundreds of millions in executive indebtedness and executive
compensation.
They were convicted for their roles in the criminal case and
sentenced to serve terms of 8 ½ to 25 years. They also paid $134
million in restitution to Tyco and criminal fines of $70 million
and $35 million, respectively.
The final settlements are still subject to approval by a federal
New York judge.
-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634;
sarah.lynch@dowjones.com