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Kozlowski, Former Tyco Executive, Rejected By U.S. High Court

By Greg Stohr

June 8 (Bloomberg) -- The U.S. Supreme Court rejected an appeal from former Tyco International Ltd. Chief Executive Officer L. Dennis Kozlowski, leaving intact his conviction for stealing millions of dollars from the company.

The nation’s highest court, without comment, let stand a New York state court ruling that said Kozlowski and former Tyco Chief Financial Officer Mark Swartz weren’t entitled to review interview notes taken during an internal company investigation. The joint appeal by Kozlowski and Swartz contended they were deprived of their constitutional right to present a defense.

The two men have paid $105 million in fines and $134 million in restitution and are serving prison sentences of as long as 25 years.

Kozlowski and Swartz were convicted in 2005 of securities fraud, grand larceny and falsifying business records. They stole about $137 million from Tyco, owner of ADT, the world’s biggest provider of security systems, through unauthorized bonuses and the abuse of company loans, prosecutors said.

Tyco is based in Switzerland and run from New Jersey.

The case is Kozlowski v. People of the State of New York, 08-1260.

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net.

Last Updated: June 8, 2009 10:05 EDT

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