Former Tyco Chief Kozlowski Is Denied Parole in New York
Stock Chart for Tyco International Ltd (TYC)
Former Tyco International Ltd. (TYC) Chief Executive Officer L. Dennis Kozlowski was denied parole “due to concern for the public safety and welfare,” the New York state Department of Corrections and Community Supervision said.
The Parole Board interviewed the 65-year-old Kozlowski yesterday and informed him today of its decision, Peter Cutler, a spokesman for the department, said in an e-mail. Kozlowski was convicted in 2005 of looting his company and sentenced to 8 1/3 to 25 years in prison.
“Your instant offenses are the result of your theft of over $100 million dollars from Tyco, an international public corporation, in glaring violation of the trust placed in you as CEO by the board of directors and corporate shareholders,” the board said in its decision, according to Cutler’s e-mail.
“Mr. Kozlowski is deeply disappointed by the decision of the Parole Board,” Alan Lewis, an attorney with Carter Ledyard & Milburn LLP who represents Kozlowski, said in a statement. “Respectfully, he does not agree that his parole would compromise public safety.”
Kozlowski was transferred in January to the Lincoln Correctional Facility, a minimum-security facility on Manhattan’s 110th Street near Fifth Avenue, from the medium- security Mid-State Correctional Facility in Marcy, Cutler said last month.
Kozlowski leaves every weekday morning as part of a work- release program and must return every night to the prison, Cutler said. He is permitted to spend Saturday nights outside the facility, Cutler said.
Kozlowski is working as a clerk at a software company and has helped other inmates learn to read and to earn their general equivalency diplomas, his lawyers said last month. While the Parole Board noted that Kozlowski’s disciplinary record “appears clean” and that he has made “progress and achievement,” it denied his request.
“Your discretionary release, at this time, would not thus be compatible with the welfare of society at large, and would tend to deprecate the seriousness of the instant offenses and undermine respect for the law,” the board said, according to Cutler’s e-mail.
Kozlowski, along with former Chief Financial Officer Mark Swartz, was convicted in June 2005 of securities fraud, grand larceny and falsifying business records. Swartz also has been transferred to the Lincoln facility and is participating in work-release, according to his lawyer, Charles Stillman.
The jury, in New York State Supreme Court in Manhattan, found that Kozlowski and Swartz stole about $137 million from Tyco in unauthorized compensation and made $410 million from the sale of inflated stock. An earlier trial resulted in a mistrial after a juror reported receiving threats.
Tyco, based in Schaffhausen, Switzerland, is the world’s biggest maker of security systems.
To contact the reporter on this story: Chris Dolmetsch in New York at email@example.com.
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.