Tyco Bought Personal Insurance for CEO, Former Executive Says

Tyco International Ltd.’s former director of risk management testified Wednesday that he was asked to acquire personal insurance for the company’s top executives, including for millions of dollars of artwork owned by its former chief executive.

Gerald Goetz, Tyco’s director of risk management from 1992 until earlier this year, said he acquired insurance to cover a variety of things, including homes, automobiles, watercraft and artwork. He estimated it took about 5% of his time at the Bermuda-based conglomerate.

Goetz said he negotiated coverage for several employees, including L. Dennis Kozlowski, Tyco’s chief executive at the time, and Mark Swartz, Tyco’s former chief financial officer.

Kozlowski and Swartz are on trial in Manhattan, charged with improperly using Tyco funds to enrich themselves and others. Each faces as many as 30 years in prison. They have denied wrongdoing.

In particular, Goetz said he was asked to acquire insurance for $8.8 million of artwork in a New York apartment occupied by Kozlowski but owned by Tyco.

He was later asked to acquire additional coverage for artwork there, including a Monet and a $1.9-million piece.

Meanwhile, Michael Robinson, Tyco’s former treasurer, said under cross-examination Wednesday that he was never asked by Swartz to conceal information about wire transfers requested by Kozlowski and Swartz.

On Tuesday, Robinson testified that he wasn’t responsible for determining the appropriateness of the transactions, only whether the employee requesting money had the authority to do so.

He said he felt Kozlowski and Swartz had that authority and signed off on the transfer of millions of dollars of Tyco funds as loans to Kozlowski and Swartz during the four years he worked as treasurer.

“I never thought these two individuals who had net worths that were enormous to me would have an issue paying them back,” Robinson said.