New Trial Set for Ex-Tyco Executives Kozlowski, Swartz

January 18 is the date set by New York State Supreme Court Justice Michael Obus to retry former Tyco executives Dennis Kozlowski and Mark Swartz on corruption charges. Their first trial ended in mistrial more than two months ago.

Kozlowski and Swartz, Tyco's former CEO and CFO, respectively, are accused of looting Tyco of about $600 million. The charges against them include grand larceny, securities fraud and possession of stolen property, among other crimes. Both men have pleaded not guilty to the charges.

A juror in the first trial received what was later determined to be a threatening letter from a man not involved with the case. The incident led to the April 2 mistrial, CNN/Money reported.

The new trial date was originally supposed to be set last Friday, but state and federal offices in New York were closed to observe Ronald Reagan’s death.

On Monday, at the hearing to set the new trial date, Obus denied a request by the two defendants to dismiss three grand larceny counts against them.

However, in a setback for prosecutors, Obus dismissed 7 of 14 counts against Kozlowski in a separate but related case involving his purchase of impressionist artwork for which he did not pay sales tax. In June 2002 a grand jury indicted him on charges of conspiracy and various tax crimes. This initial indictment later led to the more serious charges against Kozlowski and Swartz. Prosecutors are now waiting to hear whether Obus will combine the government’s now-diminished tax case against Kozlowski with the larger case against Kozlowski and Swartz, CNN/Money reported.

"This is good news for the defense only in that the government really has struggled to bring as much as possible about the art purchases into the case," Jonathan Turley, a criminal defense lawyer and George Washington University law professor, told CNN/Money. "Whether or not they [prosecutors] give a damn about the art or the shower curtain, they know it poisons the well for the jury."

You may like these other stories...

Scott London, a former senior audit partner at KPMG LLP, was sentenced to 14 months in federal prison on Thursday for providing inside information about several of his firm’s clients to a friend, who used it to make at...
By Teresa Ambord, Correspondent You'd think a man who masterminded the biggest Ponzi scheme in history would have ice water in his veins. The name Bernard Madoff has become synonymous with investment scams after his...
By Ken Berry In a new case decided by the US Supreme Court, the remnants of a tax shelter partially constructed by wily Texas billionaire Billy Joe McCombs - known informally as "Red" - collapsed like a house...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.