Tyco Securities Fraud Lawyers
The lawyers and attorneys at our firm are offering free consultations to victims of Tyco securities fraud. Tyco International became synonymous with corporate greed after it was revealed that former CEO L. Dennis Kozlowski had used Tyco money for lavish parties and furnishings for his New York apartment, including art, a $6,000 shower curtain and a $15,000 umbrella stand.
If you suffered financial losses as a result of the fraud at Tyco, you may be entitled to compensation. We urge you to contact one of our Tyco securities fraud lawyers as soon as possible to protect your legal rights.
Under Kozlowski, Tyco grew dramatically through acquisitions and saw its stock price hit a high of $63.21 in 2001. But in 2002, the SEC concluded that Tyco used aggressive accounting for acquisitions to inflate profits, hat it had hidden millions in executive compensation. The investigation found that Kozlowski; Mark Swartz, Tyco's former CFO; and Mark Belnick, the company's chief legal officer, had taken over $170 million in loans from Tyco without receiving appropriate approval from Tyco's compensation committee and notifying shareholders. For the most part these loans were taken with low to no interest. The SEC also charged that Kozlowski and Swartz sold seven and a half million shares of Tyco stock for $430 million without telling investors.
Kozlowski and Swartz were eventually convicted of grand larceny, falsification of business records and conspiracy and are now serving sentences of up to 25 years in New York state prisons. A former director, Frank Walsh, who received a secret $20 million payment for arranging a merger, pleaded guilty to securities fraud but was not sentenced to prison.
Richard Scalzo, lead partner on the Tyco audit for PricewaterhouseCoopers, was later barred by the SEC from auditing public companies. The commission said that from 1999 on, Scalzo had good reason to doubt the honesty of Kozlowski and Swartz but did not pursue proper auditing procedures that could have uncovered the fraud.
Legal Help for Victims of Tyco Securities Fraud
If you or someone you know owned stock in Tyco and suffered financial losses because of the securities fraud committed by Tyco executives and auditors, you have valuable legal rights. Please contact one of the Tyco securities fraud lawyers at our firm by filling out our online form or calling 1-800-LAW INFO (1-800-529-4636).