|
NEW YORK (CNN) -
Jurors in the fraud and larceny trial of former Tyco International executives Dennis Kozlowski and Mark Swartz ended their seventh day of deliberations Friday without reaching a verdict.
Kozlowski and Swartz are accused of taking unauthorized bonuses and selling shares in the company after misrepresenting Tyco's financial condition to investors and regulators.
This is the two former executives' second trial -- the first ended in a mistrial last year after a juror claimed she had received threatening phone calls.
Prosecutors allege that Kozlowski, Tyco's chairman and CEO from January 1993 to June 2002, illegally took $95.7 million from the company and illegally made an additional $280 million in sales of Tyco shares after falsifying the company's business records.
They claim Swartz, Tyco's chief financial officer from February 1995 to August 2002, stole $41.7 million and sold shares worth $125 million after lying about the company's financial condition.
Both men are charged with 27 counts including grand larceny, securities fraud and possession of stolen property, among others. Late Thursday, jurors asked New York State Supreme Court Justice Michael J. Obus if they could return a verdict on some of the counts but not others. Obus told the jury that he could under state law accept a partial verdict, but they would have to continue to deliberate on the remaining counts. The jury spent most of Friday re-reading testimony and poring over trial exhibits.
The trials have uncovered lavish spending by Kozlowski during his tenure as Tyco's top executive, including a $1 million birthday party he threw for his wife on the island of Sardinia and a $26,000 shower curtain for his New York City apartment.
Both Kozlowski and Swartz have maintained that Tyco's board of directors and its auditors were aware of and authorized the bonuses they received as part of their compensation packages.
Five former Tyco directors testified they never knew of the disputed payments and never approved of them.
The jury will resume deliberations Tuesday.
Click here for CNN/Money special on corporate scandal.
|
