Risk & Compliance

Swartz Defense Rests

''I was paid a ton of money by Tyco,'' says the former finance chief, ''and that was what was reported.''
Stephen TaubMay 18, 2005

The defense has rested in the case against former Tyco International chief financial officer Mark Swartz.

Swartz, who testified for the past eight days, continues to insist that he is innocent of charges that he looted the conglomerate of hundreds of millions of dollars, along with former chief executive officer Dennis Kozlowski.

“No shareholder was misled,” Swartz reportedly said. “I was paid a ton of money by Tyco, and that was what was reported.”

According to the Associated Press, Swartz has complained that he has been denied access to every document that was produced when he was Tyco’s CFO, including his own handwritten computations regarding his bonuses. “I am innocent,” Swartz said, according to the wire service. “I believe the proof of my innocence existed in the boxes at Tyco. I wanted to go through all of the documents I could get my hands on.”

Swartz and Kozlowski — who also testified for himself, and whose case has already been presented — have been on trial since January. The first case against the duo ended in a mistrial in April 2004.

Summations are expected to begin on Monday, according to several reports; the judge is expected to give the case to the jury on May 31, according to Bloomberg.

Swartz and Kozlowski, who have been charged with grand larceny, securities fraud and other crimes stemming from their huge bonuses and other compensation, face up to 25 years in prison if they are convicted of the most serious charge of grand larceny, according to Dow Jones.