Indicted Exec Teaches Law at Cornell

Not many college students get to learn about the American legal system from a central figure in one of the biggest corporate scandals in U.S. history.

But for about 50 undergraduate students in Cornell University’s “Government 315” class this summer in New York, their instructor is Mark Belnick, the indicted former general counsel of Tyco International Ltd.

Belnick awaits trial on charges that he stole $12 million from Exeter, N.H.-based Tyco by accepting a bonus that the company’s board had not approved. He is also accused of falsifying business documents to conceal a $14.5-million, interest-free loan from Tyco.

While Belnick prepares for the biggest legal battle of his life, he uses the Socratic method to teach students the roots of American law, according to Cornell’s course description.

“It’s a very popular course,” said Christine Holmes, special programs manager for Cornell’s School of Continuing Education. “The students are aware of who’s teaching, and that has not hurt enrollment.”

Belnick could not be reached for comment.

His legal career tumbled last year when a criminal investigation by prosecutors in Manhattan led to indictments against Belnick, former Tyco Chairman L. Dennis Kozlowski and ex- finance chief Mark H. Swartz.

The scandal helped erase about $90 billion in market capitalization last year after Kozlowski and Swartz were charged with looting $600 million through unauthorized pay and fraudulent stock sales. Jittery investors dumped their shares in the wake of the Enron Corp. scandal.

Belnick, a 1968 graduate of Cornell, has denied the charges against him in court papers. Belnick’s lawyers have said Tyco’s outside auditor and compensation committee knew about the loans.