UPDATE: Ex-Executives Kozlowski,Swartz Appeal To US Supreme Court
15 April 2009 - 5:56AM
Dow Jones News
Former Tyco International Ltd. (TYC) top executives L. Dennis
Kozlowski and Mark H. Swartz have appealed their fraud convictions
to the U.S. Supreme Court.
In their appeal filed Friday, Kozlowski, Tyco's former chief
executive, and Swartz, the company's former chief financial
officer, asked the high court to review a decision by the New York
Court of Appeals last year upholding their criminal convictions on
charges they systematically looted the Bermuda conglomerate.
If the Supreme Court agrees to hear the case, the former
executives are planning to challenge a finding by the state's
highest court that a lower court didn't abuse its discretion in
quashing a subpoena by the men after their first trial.
Kozlowski and Swartz were seeking memorandums and notes from law
firm Boies Schiller & Flexner LLP relating to interviews of
employees, directors or auditors of Tyco. Boies Schiller conducted
an internal investigation for Tyco in 2002.
"This case merits review because it presents a direct and
increasingly frequent collision between bedrock values - a criminal
defendant's right to obtain evidence necessary for his defense
versus a non-governmental third party's interest in being able to
conduct investigations without fear of having to later divulge its
files - in a specific context that makes that collision almost
inevitable: a non-public internal investigation followed by a
public prosecution," lawyers for the former executives said in
their filing.
In June 2005, a jury convicted Kozlowski and Swartz each of 22
of 23 counts, including grand larceny, conspiracy and securities
fraud, in connection with giant bonuses and other improper
compensation they received while working as Tyco's top executives.
Their convictions followed a mistrial in the case in 2004.
Kozlowski, 62 years old, and Swartz, 48, have been incarcerated
since a state judge sentenced them in August 2005 to between eight
and one-third and 25 years in prison.
Kozlowski is serving his prison term at Midstate Correctional
Facility in Marcy, N.Y., about 52 miles outside of Syracuse, while
Swartz is incarcerated about three hours away at Wallkill
Correctional Facility in Wallkill.
Tyco, which has its headquarters in Bermuda, operates out of
West Windsor, N.J.
"Dennis Kozlowski and Mark Swartz were denied access to evidence
so important that New York's highest court recognized it might have
established their innocence," said Alan Lewis, a lawyer for
Kozlowski. "As profoundly troubling as that is, the explanation
given by New York's highest court - the notion that Mr. Kozlowski
and Mr. Swartz lost the right to obtain the evidence because they
failed to interview prosecution witnesses before there was a
prosecution - is even more disturbing."
-By Chad Bray, Dow Jones Newswires; 212-227-2017;
chad.bray@dowjones.com