Case Study Of Tyco's Case

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2008). In September 2002, Kozlowski and Swartz were accused of stealing more than $170 million dollars from Tyco and swindling $430 million in the sale of company shares. Tyco’s former chief corporate counsel Mark A. Belnick was also found to have forged business records to hide over $14 million dollars that he received in company loans (Timeline of the Tyco International scandal, 2005). The first trial began in October 2003, which was declared a mistrial in April 2004, because a juror said she received a letter pressurizing her to convict Kozlowski and Swartz. The second trial began in January 2005 and ended in June 2005, with Kozlowski and Swartz found guilty and in a separate trial, Belnick was freed of all charges against him (Timeline of the Tyco International scandal, 2005).
The spending and loans were able to go on for so long because of Kozlowski’s unethical leadership style. However, Kozlowski felt right and content about his doings and continued to do so. He was shrewd enough to understand the loopholes that existed in the company which he could use to his advantage and was successful in soliciting several confidants who were willing to be his partners in crime. He intelligently built the required trust with his leadership team, employees and stakeholders, hence effective in portraying the needed picture to encompass the success of the company. Tyco had two complex methods of avoiding tax to enhance its financial performance which Kozlowski and Swartz used
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