Oct. 4 (Bloomberg) -- Former Tyco International Chief Financial Officer Mark Swartz was granted parole and should be released in January, according to the New York State Department of Corrections and Community Supervision.
Swartz, 53, appeared before the state’s Board of Parole via teleconference from the Lincoln Correctional Facility on West 110th Street Oct. 2 and was granted approval, Linda Foglia, a spokeswoman for the department, said in an e-mail. He is tentatively expected to be released Jan. 17, Foglia said.
Swartz, who served as Tyco’s chief financial officer from February 1995 to September 2002, and former Chief Executive Officer Dennis Kozlowski were convicted by a jury in Manhattan in 2005 of defrauding shareholders of more than $400 million. They are both serving sentences of 8 1/3 years to 25 years for stealing from the company and deceiving shareholders.
“We are grateful for the decision granting parole to Mark,” James A. Mitchell, an attorney representing Swartz with Ballard Spahr Stillman & Friedman LLP, said in an e-mail. “This has been a long journey and he looks forward to a happy and productive future.”
Kozlowski became the face of corporate greed when the government pointed to luxuries paid for with Tyco funds, including a $30 million Fifth Avenue apartment with a $6,000 shower curtain, a $15,000 umbrella stand and paintings by Claude Monet and Pierre-August Renoir.
Both men have been on “day reporting” status at Lincoln since July, and are required only to briefly report to the facility twice a week, Foglia said. They had earlier been on “work release” status, which required them to spend two days in the facility, she said.
Kozlowski is scheduled to appear before the parole board the week of Dec. 3, Foglia said. Kozlowski sued the board last year after it denied a request for early release due to “concern for the public safety and welfare.”
New York State Supreme Court Justice Carol Huff in February annulled the parole board’s decision in the Kozlowski case and granted him a new hearing. An appeals court reversed Huff’s ruling in July, saying the denial of parole was “rational” based on the serious nature of his crimes.
Swartz in May of last year sued Schaffhausen, Switzerland-based Tyco, which makes security systems, seeking to recover $60 million he said he’s owed under agreements he made with the company when he stepped down in 2002.
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