NY frees ex-Tyco executive Swartz on parole

NY frees ex-Tyco executive Swartz on parole; former CEO Kozlowski still awaiting hearing

Associated Press

ALBANY, N.Y. (AP) -- Former Tyco executive Mark Swartz, convicted in 2005 for his role in a $134 million corporate fraud case, was released on parole Thursday after serving more than eight years in prison.

Swartz, once Tyco's chief financial officer, was convicted along with former CEO Dennis Kozlowski on 22 counts of grand larceny, conspiracy, falsifying records and violating business law after prosecutors claimed they gave themselves millions in illegal bonuses and forgiven loans.

Kozlowski still awaits a parole hearing.

Defense attorneys say the men collectively paid $134 million in restitution to Tyco and $105 million in fines to the state after their convictions. They were each sentenced to 8 1/3 to 25 years in prison.

Kozlowski and Swartz were accused of giving themselves as much as $150 million in illegal bonuses and forgiving millions of dollars in loans to themselves, while also manipulating the price of the security systems company's stock by lying about the state of its finances. The executives said at trial the payments had, in fact, been authorized.

Kozlowski and Swartz spent some of their time in a work-release program, spending nights and weekends back at Lincoln Correctional Facility in Manhattan. But since July they only had to briefly report in twice weekly.

Swartz, 53, has been working as a law office assistant. Kozlowski, 66, is a clerk at a software company.

The Parole Board decided in April 2012 that releasing Kozlowski would undermine respect for the law, but he received an early hearing based on accrued merit time.

The parole for each has been opposed by Manhattan District Attorney Cyrus Vance Jr.

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