Dennis KozlowskiDennis Kozlowski

Tyco International Ltd.Tyco International Ltd.

Idris Adesanya, Joshua Idris Adesanya, Joshua Alderson, Uchee Emejulu, Alderson, Uchee Emejulu, Brad EvansBrad Evans

Tyco BackgroundTyco Background

Fire & Security productsFire & Security products ElectronicsElectronics Health CareHealth Care Engineered Products & ServicesEngineered Products & Services

Tyco BackgroundTyco Background

Security & Fire Suppression Security & Fire Suppression SystemsSystems

Automobile partsAutomobile parts Firefighter equipmentFirefighter equipment Medical diagnostic equipmentMedical diagnostic equipment Water purification systemsWater purification systems

2005 Financials2005 Financials

$30.727 billion revenue$30.727 billion revenue $5.795 billion operating income$5.795 billion operating income $3.032 billion net income$3.032 billion net income Over 250,000 employees Over 250,000 employees

worldwideworldwide

Mission StatementMission Statement

““We will increase the value of our We will increase the value of our company and our global portfolio company and our global portfolio of diversified brands by of diversified brands by exceeding customers' exceeding customers' expectations and achieving expectations and achieving market leadership and operating market leadership and operating excellence in every segment of excellence in every segment of our company.”our company.”

Issues and Legal Issues and Legal ClaimsClaims Tax EvasionTax Evasion Misappropriation of corporate Misappropriation of corporate

fundsfunds Falsifying business records Falsifying business records

Specific InstancesSpecific Instances

Evasion of $1 million in sales taxEvasion of $1 million in sales tax $600 million stolen corporate $600 million stolen corporate

fundsfunds Took out company loans without Took out company loans without

informing investorsinforming investors Spent $1 million in company Spent $1 million in company

funds for wife’s birthday partyfunds for wife’s birthday party

TimelineTimeline

Timeline FactsTimeline Facts

"Kozlowski, Swartz and Belnick "Kozlowski, Swartz and Belnick treated Tyco as their private treated Tyco as their private bank, taking out hundreds of bank, taking out hundreds of millions of dollars of loans and millions of dollars of loans and compensation without ever telling compensation without ever telling investors," said Stephen Cutler, investors," said Stephen Cutler, the SEC's director of the SEC's director of enforcement.enforcement.

Timeline FactsTimeline Facts

Kozlowski also allegedly pillaged a fund Kozlowski also allegedly pillaged a fund Tyco uses to help executives relocate to Tyco uses to help executives relocate to buy his first wife, Angie, a $7 million buy his first wife, Angie, a $7 million Park Ave. apartment. Swartz dipped into Park Ave. apartment. Swartz dipped into the fund to buy a $6.5 million Upper the fund to buy a $6.5 million Upper East Side apartment, according to East Side apartment, according to authorities. So did Belnick, investigators authorities. So did Belnick, investigators said, who used $14 million to buy a said, who used $14 million to buy a Central Park West pad and a ski chalet Central Park West pad and a ski chalet in Utah. in Utah.

Timeline FactsTimeline Facts

Kozlowski allegedly billed Tyco Kozlowski allegedly billed Tyco $72,042 for jewelry, $155,067 for $72,042 for jewelry, $155,067 for clothing, $96,943 for flowers, clothing, $96,943 for flowers, $60,427 for club memberships, $60,427 for club memberships, $52,334 for wine and $110,000 $52,334 for wine and $110,000 for corporate use of his personal for corporate use of his personal yacht yacht

Legal and Ethical Legal and Ethical MattersMatters Worth at least $500 million Worth at least $500 million

Kozlowski swindled New York City Kozlowski swindled New York City out of $1 million in sales tax due out of $1 million in sales tax due on fine art (tax evasion; definitely on fine art (tax evasion; definitely a crime). a crime).

AnalysisAnalysis

Legal and Ethical Legal and Ethical MattersMatters- $170 million stolen from company $170 million stolen from company

accountaccount- $430 million stock sales$430 million stock sales- AnalysisAnalysis

Dennis KozlowskiDennis Kozlowski

Sentenced 8 years and 4 months Sentenced 8 years and 4 months to 25 years in prison.to 25 years in prison.

Questions & AnswersQuestions & Answers