Relatives Come Forward With Offer To Help Former Tyco Exec SwartzOct 10, 2002 | AP
Relatives and friends of Mark Swartz, Tyco International's former chief financial officer who has been indicted on grand larceny charges, have offered to post $5 million as security for his $50 million bail.
Barbara Thompson, spokeswoman for the Manhattan district attorney, said Swartz's lawyers "have sent us a letter dated Oct. 9 in which they proposed posting the bail. It hasn't been posted yet."
The group offering to post bail in cash and real estate includes Swartz's parents, his wife's parents and his wife's aunt, Thompson said.
A hearing on whether the bail is acceptable was scheduled for Friday at 9:30 a.m. before state Supreme Court Justice Michael Obus. That's the deadline for Swartz to post bail, and the judge could jail him if he fails to do so.
Prosecutors rejected Swartz' prior bail offerings as profits from his crimes at Tyco and therefore legally unacceptable.
Swartz, 41, and L. Dennis Kozlowski, 55, Tyco's former chairman and chief executive officer, were indicted last month on charges of enterprise corruption and grand larceny for allegedly stealing some $600 million from the company. Both men have pleaded innocent.
The judge allowed Kozlowski's ex-wife, Angie Kozlowski, to post $10 million cash bail last month after rejecting the prosecution's claim that the money was the fruit of continuous and massive crime. His lawyers said that money had come from their divorce settlement.
Assistant District Attorney John Moscow has argued that all the money both men received from Tyco should be presumed tainted until proven otherwise.
The judge accepted that argument with respect to Swartz, but he has let him remain free while he tried to raise an acceptable $5 million to secure his $50 million bail.
Thompson said she did not know whether Moscow would ask for time to investigate the source of the money the relatives wanted to post for Swartz.
"Post it, then we'll decide," she said.
Meanwhile, on Thursday, state Supreme Court Justice Martin Shulman modified another judge's order and told Swartz he may accept a $6.4 million offer for his yacht, the Alteza. The prior order bars Swartz from disposing of any of his property.
Shulman noted that the charter company that operates the yacht has been losing money. The judge directed that the sales agents receive their commissions and that the balance of the money go into an escrow account pending further court orders.
Shulman also allowed Swartz to transfer $34,465 from a Merrill Lynch account to pay 17 employees at the two companies _ Sea Ridge and Sea Holdings/Sea Management _ that operate and manage the Alteza.
Tyco, a Bermuda-based conglomerate that is headquartered in Exeter, N.H., makes everything from coat hangers to security systems.
Swartz' lawyer, Charles Stillman, had no comment.