Tyco Exec Looting The Company Of Millions Of Dollars. Prosecutors looking to convict former Tyco executives of looting the company of millions of dollars have secured the testimony of the firm’s former lead auditor, according to a published report Monday.
Richard Scalzo, Tyco’s former auditor from PricewaterhouseCoopers, will testify against the company’s former chief executive Dennis Kozlowski and former chief financial officer Mark Swartz in a criminal trial set to begin at the end of September, the Financial Times reported.
Kozlowski and Swartz are facing charges that they gained $600 million by looting ‘Tyco’ and engaging in improper stock transactions.
Scalzo will testify that he did not know or authorize the actions taken by Kozlowski or Swartz, the paper reported, citing people close the situation.
testimony against the former Tyco executives
Following Scalzo’s agreement to give testimony against the former ‘Tyco’ executives, Robert Morgenthau, the Manhattan district attorney, said his office closed the case against Scalzo and PricewaterhouseCoopers, according to the Times.
Attorneys for Kozlowski and Swartz likely will attack Scalzo’s credibility, questioning whether he cut a deal to avoid criminal prosecution, the paper reported.
The Securities and Exchange Commission banned Scalzo from auditing a public company for life in a civil case in which he neither admitted nor denied wrongdoing, according to the Financial Times.