Mr Kozlowski and Mr Swartz, Tyco’s former chief executive and chief financial officer respectively, still face 32 counts including grand larceny, conspiracy, securities fraud and falsifying business records.
Although a serious charge typically reserved for mafia cases, enterprise corruption was considered the wrapping around the theft charges, according to legal experts on white collar crime. It also highlighted prosecutors attempts to cast a wide net in their attempts to convict Mr Kozlowski and Mr Swartz.
The two are accused of stealing $600m in unapproved compensation and improper share deals. They have pleaded not guilty.
The larceny charges, which include allegations relating to more than $100m in special bonuses, are the heart of the New York district attorney’s case against the two men.
Both grand larceny and enterprise corruption carry maximum 25 year prison terms.