This post is part of a feature in which he wonder whatever happened to some notorious financial felons. See all 17.
In 2005, Dennis Kozlowski was convicted of misappropriating more than $400 million in company funds from Tyco International (NYSE: TYC). He had been Tyco's CEO from 1992 to 2002, during which he oversaw a massive expansion of the company through a series of strategic mergers and acquisitions. But he left the company amid controversy about his extravagant compensation package.
Though found guilty of grand larceny, Kozlowski continues to deny that he committed any crime. He feels that he was unfairly punished for his "embarrassingly big" pay package, as he once put it, as well as his extravagant lifestyle. That lifestyle included such things as $6,000 shower curtains and $15,000 umbrella stands, as well as a $2 million birthday party complete with togas, Jimmy Buffett, a cake with exploding breasts, and a stature of David that peed vodka. Oh, and the party was also "shareholder meeting" so Tyco could help foot the bill. (The home where this party occurred is now for sale for a mere $16.5 million, if you're interested.)
Kozlowski is currently serving a minimum of eight years and four months in prison. But he is not the only one to question his conviction. Some think he was railroaded, seeing him as a scapegoat for an era when imperial CEOs ran their companies like personal fiefdoms, and boards of directors didn't get in their way. In fact, Tyco's board wasn't entirely clean: one director reaped an eight-figure payday for arranging one meeting that led to a deal.
Unlike other companies with executive-born scandals like Enron and Worldcom, Tyco is not now defunct. The conglomerate that Kozlowski cobbled together is being split into three companies, and his successor is "cautiously optimistic" about the Tyco's future.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 10:18AM
norm said...
Everyone of these scumbags and their wives should/should have been shot on the spot. That includes Stewart. If I was a victim of these people I would be waiting at the gate when they get out.
11-19-2008 @ 11:07AM
JG said...
"Shot on the spot"? Who is the more dangerous, Dennis Kozlowski or Norm?
JG
11-19-2008 @ 11:09AM
pghcream said...
This devil has caused hundreds of people to lose their jobs, lifestyles etc, and he only get sentenced to 8 years & 4 months???? Un-fukining real!!!!!!! Where's the outrage from the American public?
11-19-2008 @ 12:06PM
ANONYMOUS said...
Trey Thoelcke mentions the infamous b-day party was held at a house - wrong! He does mention that Kozlowski is in jail over a pay dispute - correct! Does that mean he should be in jail - NO! Many non-biased lawyers are now writing about how Kozlowski was railroaded - right! FREE KOZLOWSKI and concentrate on this economy. Also, I agree with JG - maybe Norm should take Kozlowski's place - he sounds violent!
11-19-2008 @ 12:10PM
kimbro said...
AOL, american organization of liberals, makes no mention of frank , dodd , cox. They have scamed us tax payers out of billions...
11-19-2008 @ 12:49PM
CC said...
My husband was a victim of Koslowski. He lost his job and much of his 401k. I think these CEO's and principals of these companys should be made to pay back every dollar they have stolen from these people. They are sitting in a plushy jail, which is probably more like a resort and just waiting to join their money on the outside. While my husband and many others like him are trying to rebuild their lives. These people in California that have just lost their homes and all of their belongings - they should be the ones the government is bailing out. If the CEO's and Principals of the bailed out companys were made to pay back their companies, the goverment (ie: American Citizens) then we wouldn't be in such a mess.
12-05-2008 @ 1:07AM
Morgan said...
CC, How did Kozlowski cost your husband his job? Specifics please.
12-05-2008 @ 11:06AM
bullfrog44 said...
I inherited Tyco as a supplier in 1985 when the company I worked for acquired a competitor...at the time Tyco was a manufacturer of printed circuit boards and backplane assemblies...management even back then were a bunch of sleazeballs....we parted company as soon as I could find replacement vendors