Tyco

Tyco Scandal (2002)

Company

New Jersey -based security systems company.

What happened

CEO and CFO stole 150 million dollars and reduce the company income by 500 million

Main players: CEO Dennis Kozlowski and former CFO Mark Swartz

kozlowski and Swarts were sentenced 8-25 years in prison along with a lawsuit for 2.92 billion dollars payed out to investors.

how they were caught

private investigators found huge loans being given to kozlowski and they were later forgiven

How they did it

They used unapproved loans and fraudulent stock sales and disguised it as executive bonuses.

fun fact

At the height of the scandal Kozlowski threw a 2 million dollar birthday party for his wife on an island complete with a Jimmy Buffett performance.