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Wednesday, March 31, 2004

Tyco jurors begin lengthy read-back


Former CFO's testimony presented again

The Associated Press

NEW YORK - Jurors at the Tyco International corporate-looting trial began hearing a lengthy read-back Tuesday of testimony from former chief financial officer Mark Swartz about $72 million in bonuses given to him and the company's former CEO.

The jury had first requested the read-back last week, then asked the judge to delay it because they were making progress in the jury room. Deliberations later broke down in infighting, almost bringing the case to a mistrial.

But jurors continued their deliberations for a ninth day, also hearing a brief read-back of testimony Swartz gave about a conversation with former chief executive L. Dennis Kozlowski about loan forgiveness.

Swartz and Kozlowski are accused of stealing $170 million to finance their lavish lifestyles by taking unauthorized bonuses and abusing company loan programs. Prosecutors say the two netted an additional $430 million by pumping up Tyco stock prices and selling their shares at market rates from 1995 through 2002.

The defense argued that the two men earned every dime and that the board of directors and the company's auditors knew about the compensation and never objected.

Swartz testified that he did not do anything he believed was illegal. He said he and Kozlowski received bonuses and had their loans forgiven at many informal company board meetings at which no minutes were recorded. Kozlowski did not testify.

State Supreme Court Justice Michael Obus said the read-back of Swartz's testimony, which began just before 3:30 p.m., would likely stretch into today.




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