Civil Suit Against Tyco’s Ex-Execs Can Proceed
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Now that former Tyco International Ltd. Chief Executive L. Dennis Kozlowski and his finance chief, Mark Swartz, have been convicted of stealing from the company, the Securities and Exchange Commission can proceed with its civil suit against the two men, a federal judge ruled this week.
The SEC case had been on hold for more than two years during the criminal trial of the former executives in New York state court. In June, jurors found Kozlowski and Swartz guilty of grand larceny, securities fraud, conspiracy and falsifying business records.
U.S. District Judge Robert Sweet lifted a stay on discovery in the SEC’s suit Monday, clearing the way for pretrial collection of evidence.
Kozlowski, 59, and Swartz, 45, were convicted of stealing more than $150 million from Tyco through unauthorized bonuses and company loans that were forgiven.
The two men began serving prison terms of 8 1/3 to 25 years on Sept. 19.
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