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Jury Begins Deliberations in Tyco Corruption Case
Reuters ^ | Mar 18, 2004 | Paul Thomasch and Jeanne King

Posted on 03/18/2004 9:21:12 PM PST by endthematrix

NEW YORK (Reuters) - A Manhattan jury began deliberations in one of the biggest corporate corruption cases in U.S. history on Thursday, weighing nearly six months of testimony on whether two former top Tyco International Ltd. executives looted the conglomerate of $600 million.

Former Tyco Chairman Dennis Kozlowski and Mark Swartz, the company's former finance chief, face up to 30 years in state prison if found guilty on charges of grand larceny, securities fraud, conspiracy and providing false information on Tyco disclosure forms.

After receiving lengthy instructions from Manhattan Supreme Court Judge Michael Obus, the jury began deliberations on a 32-count indictment centering on claims that Kozlowski and Swartz illegally tapped company loan and bonus programs to buy yachts, jewelry and real estate.

One alternate juror, Simon Cuesta, who was dismissed by the judge shortly after deliberations began, praised the other panelists and said he was confident a "just" verdict would be reached in the case.

Cuesta declined to comment on how he would have voted, saying jurors agreed not to discuss their views publicly until the case was decided.

But Cuesta, a bus driver, hinted that there may be some disagreement among jurors in the complicated case. "Comments were made -- not that they discussed the case -- but some think one way and some think the other way," he told Reuters.

He added, however, "whatever decision they make will be a just one."

The panel sent several notes to the court as they worked through the first hours of deliberations, including one that asked the judge to define "criminal intent" -- a central issue in the trial.

Kozlowski and Swartz maintain they were authorized to receive the payments and were acting in "good faith" rather than with criminal intent, a position that prosecutors have sought to dismantle throughout the lengthy trial.

Judge Obus told lawyers he would consider the jury's note overnight.

Other questions from the jury included a request for the indictment, which was denied. The judge also turned down their request for a copy of a prosecution chart used during closing arguments that summarized the charges against the former executives since it is not considered evidence.

Swartz was the only defense witness and offered sweeping denials that he and his former boss had received bonuses and forgiven loans without the approval of Tyco's board.

© Reuters 2004. All Rights Reserved.


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events
KEYWORDS: tyco

1 posted on 03/18/2004 9:21:12 PM PST by endthematrix
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To: endthematrix; All
Anyone have a guess what this will do to their stock... either way?
2 posted on 03/18/2004 9:26:48 PM PST by SierraWasp (The Militant EnvironMental Movement has changed America to a Multi-Level Marketing Government!!!)
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To: SierraWasp
I not only own their stock. I also did a lot of work for them. Did untill these idiot scum robbed teh company blind.
Lynch um..
3 posted on 03/18/2004 9:33:17 PM PST by Brimack34
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To: Brimack34; SierraWasp
the guy has been out a while so IMO the price will be stable, or rise, either way. I hope the guy gets fried and a class action suit goes through for the bilked. I do wish i had been at a party or two. Kozlowski had purchased a 4 or $6,000 shower curtain for his MAID! He never saw it.
4 posted on 03/18/2004 9:55:42 PM PST by endthematrix (To enter my lane you must use your turn signal!)
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To: Brimack34
I'm in a fund that has Tyco International as their #3 holding in the top ten holdings. It's been a phenominal fund, but I was just wondering how big a hit the stock will take if these clowns are convicted, or if this monkey business is already priced into it.

I'm sure it's not a personality cult stock like Martha Stewart's, so it probably won't be hit too hard, if at all. Is the company damaged goods? Is that why you quit doing work for them? Or was it hurt already and had to cut back which effected your being employed by them? Care to tell?

5 posted on 03/18/2004 9:56:51 PM PST by SierraWasp (The Militant EnvironMental Movement has changed America to a Multi-Level Marketing Government!!!)
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To: endthematrix
I thought I read recently that the judge threw this case out! It must have only been one of the charges, or something. I was kinda surprised to see this article posted. Guess I just misunderstood the situation. I heard about them there wild parties, alright!!!
6 posted on 03/18/2004 10:00:12 PM PST by SierraWasp (The Militant EnvironMental Movement has changed America to a Multi-Level Marketing Government!!!)
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To: SierraWasp
I think the class action suit was tossed out.
7 posted on 03/18/2004 10:01:29 PM PST by endthematrix (To enter my lane you must use your turn signal!)
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To: SierraWasp
I own a small machine shop. One of our main customers builds products for one of tyco's many companies. The money from their stupid birthday party would have kept in business for years and years.
8 posted on 03/18/2004 10:05:14 PM PST by Brimack34
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To: SierraWasp
I think the news is pretty much out about TYC as it relates to Dennis the K. and his excesses. I definitely disagree that the co is cult of personality like Martha & Co. They have new management and are a decent (but somewhat unwieldy) collection of companies that should do well as they shed some of their more questionable acquisitions "going forward" as Wall St. is fond of saying. That said, TYC probably goes where the economy goes. I frankly don't think the verdict will have any effect on the stock price.
9 posted on 03/18/2004 11:23:38 PM PST by Attention Surplus Disorder (You get more with a gun and a smile than just a smile itself!)
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To: Attention Surplus Disorder
"I'm sure it's not a personality cult stock like Martha Stewart's,"

No, you're not disagreeing. You must have mis-read what I said, somehow, so I quoted myself to help your Attention Surplus Disorder.(grin)

Thank you for your enlightening reply as it is re-assuring to me that my Mutual Fund Manager has not lost his mind! He's been awfully good at beating the indexes in the past five difficult years and I was somewhat shocked to find Tyco so prominent in the top ten holdings.

Thanks again for you opinion!!!

10 posted on 03/19/2004 6:39:09 AM PST by SierraWasp (The Militant EnvironMental Movement has changed America to a Multi-Level Marketing Government!!!)
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To: SierraWasp
Oops, you're right, sorry. Carry on!
11 posted on 03/19/2004 6:51:07 AM PST by Attention Surplus Disorder (You get more with a gun and a smile than just a smile itself!)
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