Former Tyco CEO, Dennis Kozlowski, and ex-CFO Mark Swartz were found guilty Friday of stealing about $600 million from the manufacturing conglomerate. This was the second trial for the duo, since the first ended in a hung jury.

In this trial, prosecutors left out sordid details about Kozlowski’s lavish spending during his tenure as Tyco’s top executive, including a $1 million birthday party he threw for his wife on the Italian island of Sardinia and a $6,000 shower curtain allegedly purchased with company funds. They still went down, and now face 15 to 30 years in prison.

Today, Adelphia founder, John Rigas, and his son, Timothy Rigas, were sentenced to 15 and 20 years in prison respectively for their part in embezzling $100 million from the company and hiding $2.3 billion in off-balance-sheet debt prior to the company collapsing into bankruptcy three years ago. They should consider themselves lucky, since they could have both been sentenced to life in prison.

The moral of these stories: it doesn’t pay to be greedy. How many homes and yachts do you really need? All of these guys were extremely wealthy before they decided to lie, cheat, and steal. The Rigas family will pay $1.5 billion back to investors–how much of their net worth is that!? Perhaps it was ego that made them do it, who knows? Now, a big guy named Bubba will make them “do it,” repeatedly.

1 Comment »

  1. I was surprised they all got such long sentences. I wonder what Michael Milken thinks about all of this…

    In any case, all of the sentences will amount to life terms since none of the defendants are younger than 45… and the elder Rigas is 80 or so.

    The TYCO execs are the ones who really got the shaft (or will be getting the shaft, as it were). Since their cases were prosecuted by the State of NY, they will do time in a state penitentiary, as opposed to the fed time that the Rigas’ will do in a minimum security “fed country club.”

    oh…. an CEO Ankle Grab Week was very witty, Nugget… hey didn’t MAP used to grab his ankles freely and willingly… and pay for it? ;)

    #1 by Evan — July 16, 2005 @ 11:50 pm

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