Accounting & Tax

Subpoenas for Tyco’s ADT Unit

Tyco restated five-and-a-half years of results in 2003 largely because of accounting at the security business.
Dave CookMay 17, 2004

Tyco International Ltd. announced that the Securities and Exchange Commission has subpoenaed current and former employers in its fire and security business, which includes ADT, according to Reuters.

The announcement was made in a filing late Friday, after U.S. markets had closed.

Tyco restated five-and-a-half years of results in 2003, noted Reuters, largely because of accounting at the ADT unit. The newly issued subpoenas are reportedly looking into practices surrounding ADT dealer-connect fees. The company had previously announced that it had discontinued these practices, added the wire service.

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In March 2003, following an internal audit, Tyco’s newly named chief executive officer, Edward Breen, fired Jerry Boggess, who ran the fire and security division under former CEO Dennis Kozlowski, according to Reuters. The trial of Kozlowski and former chief financial officer Mark Swartz, who had been accused of looting Tyco of $600 million, ended last month in a mistrial.