A jury convicted L. Dennis Kozlowski today of 22 of 23 counts of conspiracy, securities fraud, grand larceny and falsifying records, and acquitted him on one charge.
Kozlowski, former chief executive officer of Tyco, was found guilty in state Supreme Court. He was acquitted on a single count of falsifying records.
Sentencing is tentatively scheduled for Aug. 2. The prosecution is seeking up to 30 years in state prison. Kozlowski’s attorney said he would appeal the jury’s decision.
The jury deliberated 11 days before retuning the verdicts Friday afternoon. The first trial ended in a mistrial in April 2004 after a juror, apparently a holdout for acquittal, received a threatening telephone call and letter.
Co-defendant Mark H. Swartz, 44, the conglomerate’s former chief financial officer, was found guilty of grand larceny, securities fraud and conspiracy. He was also convicted on eight of nine counts of falsifying records.
They were convicted of stealing about $600 million from the company to pay for expensive jewelry, a posh Manhattan apartment and a Mediterranean birthday bash. The defendants said they didn’t know of any wrongdoing when they accepted the money and loans. Both men remain free on $10 million bail each.
Kozlowski’s attorney said he would appeal the decision. Charles Stillman, Swartz’s attorney, said, “We’re disappointed and will deal with this on appeal.”
Kozlowski didn’t testify at his first trial. At the second one, he told the jury how his bonuses were calculated and earned, rather than looted, in accordance with Tyco’s corporate policy. Kozlowski didn’t dwell on a pay package of $125 million in 2000, but he defended Tyco’s system of various incentives and loan programs.