(born November 16, 1946) is a formerCEOofTyco International, convicted in 2005 of crimes related to his receipt of $81 million in unauthorized bonuses, the purchase of art for $14.725 million and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director. He served more than six years at theMid-State Correctional FacilityinMarcy, New Yorkbefore being transferred to the Lincoln Correctional Facility in New York City, from which he was granted conditional release on January 17, 2014.
Kozlowski was born inNewark, New Jersey. His mother, Agnes (ne Kozell), worked for the Newark Police Department and as a school crossing guard, and his father, Leo Kelly Kozlowski, worked for the Public Service Transport.56His parents were second-generation Polish-Americans.7Kozlowski attendedSeton Hall University, a Catholic university.8
Kozlowski joined Tyco in 1975, becomingCEOin 1992. With Kozlowski at the helm, Tyco massively expanded during the late 1990s. The company consistently beatWall Streets expectations and through a series of strategic mergers and acquisitions, ushered in a new era of mega-conglomerates. Kozlowski left Tyco in 2002, amid a controversy in regard to his compensation package.
Kozlowski has been tried twice. The first attempt was a ruled mistrial when one of the jurors was threatened by the public after being reported to have made anOK signtowards Kozlowskis lawyers.9Kozlowski testified on his own behalf during the second trial, stating that his pay package was confusing and almost embarrassingly big, but that he never committed a crime as the companys top executive.
Along with former Tyco chief financial officerMark Swartz, Kozlowski was convicted on June 17, 2005 of crimes related to his receipt of $81 million in purportedly unauthorized bonuses, the purchase of art for $14.725 million and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director.10On September 19, 2005 he was sentenced by Judge Michael Obus of theManhattan Supreme Courtto serve from eight years and four months to twenty-five years in prison for his role in the scandal.11In addition, Kozlowski and Swartz were ordered to pay a total of $134 million in restitution. Koslowski was further fined $70 million, while Swartz was fined $35 million. Both were convicted on 22 counts of grand larceny, falsifying business records, securities fraud and conspiracy.12
His aggregate minimum sentence was set at 8 years and 4 months, and his aggregate maximum sentence was 25 years; his conditional release date was set for May 17, 2022, and his maximum expiration date was September 17, 2030. In April 2012, Kozlowski was denied parole.13His next parole eligibility date, and his parole hearing merit release appearance, were then set for January 17, 2014. On January 17, 2014 he was granted conditional release from the Lincoln Correctional Facility in New York City.234
Kozlowski, prior to trial, asserted his innocence by stating, I am absolutely not guilty of the charges. There was no criminal intent here. Nothing was hidden. There were no shredded documents. All the information the prosecutors got was directly off the books and records of the company.14After his conviction, but before his appeal was complete, he again denied his guilt. I was a guy sitting in a courtroom making $100 million a year [a]nd I think a juror sitting there just would have to say, All that money? He must have done something wrong. I think its as simple as that.14
Nevertheless, Kozlowski admitted his culpability for the crimes at his parole hearing. It was greed, pure and simple, the 67-year-old former executive told a New York State parole panel at a December 3 video conference hearing. I feel horrible … I cant say how sorry I am and how deeply I regret my actions.15
Kozlowskis trial was criticized by civil rights lawyerDan Ackman, who said:16
Its fair to say that Kozlowski and Swartz abused many corporate prerogatives and that they invented new ones just so they could abuse them. They acted like pigs, as a lot of CEOs act like pigs. Still, the larceny charges at the heart of the case did not depend on whether the defendants took the moneythey didbut whether they were authorized to take it. Questions of authority are, by nature, legal questions, not questions for jurors.
Kozlowski became notorious for his extravagant lifestyle, supported by the boomingstock marketof the late 1990s and early 2000s; allegedly, he had Tyco pay for his $30 millionNew York Cityapartment which included $6,000 shower curtains and $15,000 dog umbrella stands.
According toForbes, Kozlowski also purchased several acres in the private gated community, The Sanctuary, inBoca Raton, Florida, while he was CEO atTyco International. He also purchased a multimillion-dollar oceanfront estate on the island ofNantucket.
Tyco paid $1 million (half of the $2 million bill) for the 40th birthday party of Kozlowskis second wife, Karen Mayo Kozlowski. The extravagant party, held on theofSardinia, featured anice sculptureofMichelangelosDavidurinatingand a private concert byJimmy Buffett. In a camcorder video, Dennis Kozlowski states that this party will bring out a Tyco core competency the ability to party hard. Subsequently, this shareholder meeting/birthday party became known as the Tyco Roman Orgy.17
On July 31, 2006, Karen Kozlowski filed for divorce inPalm Beach County, Florida. No specific reasons were cited, but the motion asked the court to equitably distribute the couples assets and liabilities and asked that gifts Karen received be declared marital property. She also sought alienon the couplesBoca Ratonmansion. The motion also requestedalimony.
Kozlowski is a graduate ofSeton Hall University, served as Head of the Board at Berwick Academy in South Berwick, Maine for many years, and served on theMiddlebury CollegeBoard of Trustees in the 1990s.
Ex-Tyco CEO Dennis Kozlowski Released from Prison. CEPRO. January 17, 2014.
Merced, Michael.Kozlowski Is Granted Parole. The New York Times
Inmate Information» NYS Department of Corrections and Community Supervision. Nysdoccslookup.doccs.ny.gov. Retrieved January 25, 2013.
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Dan Ackman, Judge Declares Kozlowski Mistrial
Dan Ackman, Tyco Trial II: Verdict First, Law Second
Grace Wong (September 19, 2005).Kozlowski gets up to 25 yearsCNNMoney.
Associated PressKozlowski sentenced in Tyco trial.
, September 19, 2005. Retrieved October 7, 2016.
Riley, Charles.Ex-Tyco CEO Dennis Kozlowski denied parole.
Schorn, Daniel (February 11, 2009).Dennis Kozlowski: Prisoner 05A4820.
A Hill and A Michaels, Paw taste condemns Kozlowski: Report says Tyco bought $15,000 dog umbrella stand for chiefs apartment (September 18, 2002)
Video: October 2011 Kozlowsi Applying for Release
Interview with Dennis Kozlowski from prisonby writer Peter Hossli
Partial transcript of the CBS 60 Minutes interview from cbsnews.com
This page was last edited on 1 August 2018, at 11:05