Kozlowski, Quattrone Trials Set To Begin
Federal trials in Manhattan to focus on alleged corporate excess, probe interferenceSep 29, 2003 | CNN/Money
Two high-profile federal criminal trials that will shine light on alleged excesses of corporate America begin Monday as former Tyco International CEO Dennis Kozlowski and former technology investment banker Frank Quattrone face charges in Manhattan.
Dennis Kozlowski's federal criminal trial is set to start Monday.
Kozlowski and former Tyco Chief Financial Officer Mark Swartz face charges that they looted Tyco out of $600 million through unauthorized pay and fraudulent stock sales. Tyco has also filed civil charges against Kozlowski, accusing him of recklessly tapping company funds for his lavish lifestyle.
Kozlowski resigned from Tyco in June 2002 amid state charges that he cut illegal deals to avoid more than $1 million in New York state sales taxes on artwork he purchased. He and Swartz were indicted by federal prosecutors in September 2002.
Quattrone, who as the leading investment banker for the technology industry Credit Suisse First Boston helped bring many high-profile tech companies public, is accused of interfering with a federal investigation of hot tech stock offerings.
He is accused of forwarding an e-mail directing staff to destroy documents subpoenaed by a grand jury and the Securities and Exchange Commission.