Tyco: "I Am Sure That Is Really a Nice Shower Curtain"
CASE STUDY #20 TYCO: I 'm Sure That Is a Really Nice Shower Curtain.
The author chronicles the downfall of Dennis Kozlowski, the former CEO Tyco International. He was convicted in 2005 of his receipt of $81,000,000 in unauthorized bonuses, purchasing art for approximately $14.7 million. He also paid $20,000,000 to his Tyco director.
This trouble essentially began when he bought art for his house (in New York) and sent it to New Hampshire to avoid $1,000,000 in taxes. He also tampered with evidence and falsified financial records. There was a document that had "wink, wink” on it regarding the artwork being shipped to New Hampshire, so he knew full well he was doing wrong and apparently didn’t think twice about the consequences.
As the investigation continues the court finds that Kozlowski and Mark Swartz were indicted for using Tyco funds for their own use. Expense accounts were falsified, there was stock fraud and other unethical behavior. He paid employees for their silence and continued to buy unusually expensive, trivial items.
Tyco 's legal counsel, Mark Belnick , was eventually fired supposedly for disrupting financial investigations, but that has been disputed. He was also given millions of dollars in compensation that was not authorized and deleted files that were relevant to the investigation against Kozlowski and Tyco. It appears that no one in this group had any conscience or concern for the employees and stakeholders.
The author questions the impact that the Board of Directors had on the dealings by Kozlowski. Several board members were friends of Kozlowski and business was conducted with their knowledge, but not the entire board’s approval. All of the illegal and unethical activity by Kieslowski and friends dropped the Tyco stock dramatically and it continued to drop as evidence against Kozlowski increased.
Accounting at Tyco also left people wondering what they were doing at Tyco International. In 2002, Tyco 's accounting
The author chronicles the downfall of Dennis Kozlowski, the former CEO Tyco International. He was convicted in 2005 of his receipt of $81,000,000 in unauthorized bonuses, purchasing art for approximately $14.7 million. He also paid $20,000,000 to his Tyco director.
This trouble essentially began when he bought art for his house (in New York) and sent it to New Hampshire to avoid $1,000,000 in taxes. He also tampered with evidence and falsified financial records. There was a document that had "wink, wink” on it regarding the artwork being shipped to New Hampshire, so he knew full well he was doing wrong and apparently didn’t think twice about the consequences.
As the investigation continues the court finds that Kozlowski and Mark Swartz were indicted for using Tyco funds for their own use. Expense accounts were falsified, there was stock fraud and other unethical behavior. He paid employees for their silence and continued to buy unusually expensive, trivial items.
Tyco 's legal counsel, Mark Belnick , was eventually fired supposedly for disrupting financial investigations, but that has been disputed. He was also given millions of dollars in compensation that was not authorized and deleted files that were relevant to the investigation against Kozlowski and Tyco. It appears that no one in this group had any conscience or concern for the employees and stakeholders.
The author questions the impact that the Board of Directors had on the dealings by Kozlowski. Several board members were friends of Kozlowski and business was conducted with their knowledge, but not the entire board’s approval. All of the illegal and unethical activity by Kieslowski and friends dropped the Tyco stock dramatically and it continued to drop as evidence against Kozlowski increased.
Accounting at Tyco also left people wondering what they were doing at Tyco International. In 2002, Tyco 's accounting