Former Tyco International chairman and chief executive officer Dennis Kozlowski, now serving prison time for stealing hundreds of millions of dollars from the conglomerate, has agreed to pay $21.2 million as part of a deal to avoid prosecution on New York State tax charges, according to published accounts.
According to his lawyer, James DeVita, and a prosecutor, Ann Donnelly, Kozlowski will reportedly pay $3 million in back sales taxes, interest, and penalties. Following the payment, New York State Supreme Court Justice Michael Obus will dismiss a number of charges, including conspiracy to evade the sales tax on $13.2 million in artwork delivered to Kozlowski but paid for by Tyco, Bloomberg reported.
DeVita told the wire service that Kozlowski will also pay about $17 million in back state income taxes.
In September, Kozlowski and former Tyco chief financial officer Mark Swartz were each sentenced to eight and one-third to 25 years in state prison. Kozlowski did not appear in court Friday, noted Bloomberg; he and Swartz presently reside in the Downstate Correctional Facility in Fishkill, New York, pending their appeals.