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    Tyco International Fraud

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    Maggie Thompson
    Tyco International was founded in 1960 and had over 70,000 employees generating $10.52 billion in sales annually by acquiring over 40 companies since 1986. The fraud occurred when Dennis Koslowski, the former CEO, Mark Swartz, the former CFO, and Mark Belnick, the former General Counsel, took unapproved bonuses, loans, and spent on extravagant personal items. They were discovered after SEC and tax evasion investigations revealed over $600 million in unauthorized spending, including a $2 million birthday party and $6,000 shower curtain. Koslowski and Swartz were convicted in 2005 for their roles and sentenced to prison terms between 8 1/3 to 25 years while paying $100,

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    Tyco International Fraud

    Uploaded by

    Maggie Thompson
    20 views17 pages
    Tyco International was founded in 1960 and had over 70,000 employees generating $10.52 billion in sales annually by acquiring over 40 companies since 1986. The fraud occurred when Dennis Koslowski, the former CEO, Mark Swartz, the former CFO, and Mark Belnick, the former General Counsel, took unapproved bonuses, loans, and spent on extravagant personal items. They were discovered after SEC and tax evasion investigations revealed over $600 million in unauthorized spending, including a $2 million birthday party and $6,000 shower curtain. Koslowski and Swartz were convicted in 2005 for their roles and sentenced to prison terms between 8 1/3 to 25 years while paying $100,

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    Tyco International was founded in 1960 and had over 70,000 employees generating $10.52 billion in sales annually by acquiring over 40 companies since 1986. The fraud occurred when Dennis Koslowski, the former CEO, Mark Swartz, the former CFO, and Mark Belnick, the former General Counsel, took unapproved bonuses, loans, and spent on extravagant personal items. They were discovered after SEC and tax evasion investigations revealed over $600 million in unauthorized spending, including a $2 million birthday party and $6,000 shower curtain. Koslowski and Swartz were convicted in 2005 for their roles and sentenced to prison terms between 8 1/3 to 25 years while paying $100,

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views17 pages

    Tyco International Fraud

    Uploaded by

    Maggie Thompson
    Tyco International was founded in 1960 and had over 70,000 employees generating $10.52 billion in sales annually by acquiring over 40 companies since 1986. The fraud occurred when Dennis Koslowski, the former CEO, Mark Swartz, the former CFO, and Mark Belnick, the former General Counsel, took unapproved bonuses, loans, and spent on extravagant personal items. They were discovered after SEC and tax evasion investigations revealed over $600 million in unauthorized spending, including a $2 million birthday party and $6,000 shower curtain. Koslowski and Swartz were convicted in 2005 for their roles and sentenced to prison terms between 8 1/3 to 25 years while paying $100,

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Tyco International Fraud

    Adajar | Cajegas
    Tyco International Background
    • Founded by Arthur Rosenberg in 1960
    • Has over 70,000 to 240,000
    employees
    • Makes over $10.52 billion in sales
    • Claimed over 40 major acquisitions
    since 1986
    • Has operations in over 100 countries
    How did the fraud happen?
    Dennis Koslowski Former CFO Mark Swartz Mark Belnick
    Former CEO Former General Counsel
    Never
    Very approved
    low interest
    Interest-freeloans
    Unapproved bonuses, loans, and extravagant
    $600 Million
    “company” spending
    $2 million
    birthday party
    $6,000
    shower
    curtain $2,000 trash can
    How was it discovered?
    1999
    • SEC began an investigation

    • Stopped because there was

    “No proper evidence”

    1999 - 2000
    January 2002
    • Tyco’s bookkeeping and accounting again came
    under question after an anonymous tip

    $20 Million

    Frank Walsh, Jr.


    June 2002
    • Koslowski was being investigated for tax
    evasion

    $13 million sales tax


    Where are they now?
    Misrepresenting
    Abusing the
    an employeecompany’s financial
    loanbonuses
    program
    $120 Million unapproved
    condition
    2005
    8 1/3 to 25 years in prison
    2005
    $100,000
    Civil penalty
    END.

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