KOZLOWSKI, Dennis
Kozlowski, Dennis (b. November 16, 1946, Newark, New Jersey), American businessman who as chief executive of Tyco International looted the conglomerate of hundreds of millions of dollars for personal use, resulting in a 2005 conviction on grand larceny and fraud charges.
KOZLOWSKI, Dennis (b. November 16, 1946, Newark, New Jersey), former chief executive officer of Tyco International who became one of the most prominent symbols of early 2000s corporate excess after being convicted in 2005 on charges of grand larceny, conspiracy, securities fraud, and falsifying business records in connection with stealing over $100 million from his company.
Kozlowski joined Tyco in 1975 and rose through the ranks to become CEO in 1992, transforming the company through aggressive acquisitions that increased annual revenues from $3 billion to over $40 billion. Under his leadership, Tyco’s stock price increased dramatically, making him one of the highest-paid executives in America with annual compensation packages exceeding $100 million.
The scandal began emerging in 2002 when investigations revealed that Kozlowski had used company funds for personal expenses, including a $6,000 shower curtain, a $15,000 dog umbrella stand, and a $2 million birthday party for his wife on the Italian island of Sardinia featuring an ice sculpture of Michelangelo’s David urinating vodka.
More seriously, prosecutors alleged that Kozlowski and Chief Financial Officer Mark Swartz had operated a criminal enterprise within Tyco, stealing money through unauthorized bonuses, fraudulent stock sales, and abuse of company loan programs. The scheme allegedly involved falsifying corporate records and misleading auditors and investors about the company’s true financial condition.
After a mistrial in 2004, Kozlowski was convicted in June 2005 and sentenced to 8⅓ to 25 years in state prison. He was required to pay $167 million in restitution and fines. The case became emblematic of corporate corruption alongside contemporaneous scandals at Enron, WorldCom, and other major corporations.
Kozlowski was granted parole in 2014 after serving nearly nine years in prison. The Tyco scandal contributed to the passage of the Sarbanes-Oxley Act and increased scrutiny of executive compensation and corporate governance practices across American business.
Another entry in this category is LAY, Kenneth.
Bibliography:
- Taking Down the Lion by Catherine S. Neal
- Prosecutors vs. Kozlowski trial transcripts
- Tyco SEC filings and investigations
- The Rise and Fall of Tyco corporate history