Tyco Carried CEO’s Yacht Loan on Books
Tyco International Ltd., for a time, carried on its ledger a loan for a yacht owned by L. Dennis Kozlowski, its former chairman and chief executive, an accounting staff member testified.
Linda Auger, head of Tyco’s accounting department, said the firm refinanced the boat, known as the K IV project, for Kozlowski and the loan was carried on its books in its construction and process account. The loan was later reclassified as a “key employee” loan to Kozlowski.
Kozlowski and Mark Swartz, Tyco’s former chief financial officer, are on trial in State Supreme Court in New York, charged with looting $600 million from the company in unauthorized pay and illicit stock sales. Each faces up to 30 years in prison. They have denied wrongdoing.
Much of Auger’s testimony reiterated testimony last week by Sheila Rex, another member of Tyco’s accounting department, that Tyco kept separate accounts on its ledger for loans to Kozlowski and Swartz.