Tyco Chief Helped Favored AnalystJan 21, 2004 | AP
L. Dennis Kozlowski, Tyco International Ltd.'s ex-chairman and chief executive, arranged for a security firm to investigate the background of the fiancee of a favored analyst, Tyco's former head of investor relations said Tuesday.
Brad McGee, Tyco' former investor relations director, testified that Phua Young, a Merrill Lynch & Co. analyst, asked him in February or March 2001 about which company the Bermuda conglomerate used to conduct background checks of companies.
After discussing Young's request with Kozlowski, McGee said that Kozlowski suggested it would be easier if Tyco asked Kroll Associates to conduct the investigation rather than Young contacting them directly.
"It would be best if Phua sent us the information and we passed it to Kroll," McGee said.
Tyco paid about $20,000 to Kroll in April 2001 for services rendered on the approval of Kozlowski, according to an invoice previously introduced by prosecutors.