Ex-CEO Allegedly Used Tyco Funds for Earrings

Tyco International Ltd.’s former chief executive, L. Dennis Kozlowski, used $246,268 in company relocation loan funds to buy earrings for his wife and daughters, according to testimony evidence.

Kozlowski, who is on trial with former Chief Financial Officer Mark Swartz for allegedly looting Tyco of $600 million, bought five sets of earrings in 1998 from Harry Winston Cos., former employee David Wellington testified. Prosecutors in New York showed the jury Tyco documents that they said proved the earrings were paid for with company relocation loan funds.

Prosecutors have charged Kozlowski and Swartz with corrupting a 1995 relocation loan program for executives as part of a huge fraud at the company. The two men contend that all bonus and loan payments were approved by the board of directors and outside auditors.