Jurors in the trial of two former top executives of Tyco International indicated yesterday they had reached verdicts on an unspecified number...
NEW YORK — Jurors in the trial of two former top executives of Tyco International indicated yesterday they had reached verdicts on an unspecified number of charges in a 31-count indictment but were seeking direction from the court on how to proceed on the unresolved charges.
The jurors, who deliberated for a fifth day, are trying to decide whether L. Dennis Kozlowski, 58, Tyco’s former chief executive, and Mark Swartz, 44, the conglomerate’s former finance chief, enriched themselves by nearly $600 million by taking unauthorized pay and bonuses, abusing loan programs and selling their company stock at inflated prices after lying about Tyco’s finances.
State Supreme Court Judge Michael Obus dismissed the jurors after they sent a note asking, “Can we deliver a verdict if we are unanimous on some counts and not on others?”
The judge said he would answer their question today. He met with attorneys from both sides to consider the jurors’ question.
Most Read Stories
- Jay Inslee for president? Governor’s profile is on the rise
- Swedish CEO resigns in wake of Seattle Times investigation
- Seattle home too toxic to enter sparked a bidding frenzy — now we know why VIEW
- Mayor Ed Murray proposes $55 million a year property-tax levy to fight homelessness VIEW
- Seattle cop accused of doing drugs with strip-club dancer, slipping names of crime victims to Q13 anchor
The four-month trial is the second for Kozlowski and Swartz. The judge declared a mistrial after the first trial in April 2004 because a juror, identified by a newspaper as a holdout for acquittal, received a menacing telephone call and letter.
Kozlowski and Swartz each face up to 25 years in prison upon conviction on just one of the grand larceny counts.
Often, prosecutors said, the defendants hid their alleged thefts by failing to disclose the bonuses and forgiven loans in company prospectuses and federal filings and bought the silence of underlings with outsized compensation.
Both used Tyco’s money to fund extravagant lifestyles that featured art, jewelry and real estate, prosecutors said. An example of that spending was the $2 million party Kozlowski threw for his wife’s 40th birthday on the Mediterranean island of Sardinia, they said. Tyco paid about half of the party’s cost.
The prosecution’s emphasis in the first trial on the lavish spending was pared in the second trial. Less time was spent on the Manhattan apartment that Kozlowski said he bought for Tyco, which with an $18 million purchase price and furnishings that included a $6,000 shower curtain, raised the cost of the place to more than $30 million.
Lawyers for Kozlowski, with Tyco from 1975 until 2002, and Swartz, who joined Tyco in 1991 and left 11 years later, said the executives believed they were acting lawfully when they accepted compensation and loan forgiveness, or spent Tyco’s money. There was no criminal intent by either man, they said, and therefore there were no crimes.