Essay about Tyco Scandal

9459 Words Mar 9th, 2013 38 Pages
Part 1- Facts of the Case
Prior to the Tyco scandal, the company was one of America's largest conglomerates, with operating revenues of 38 billion dollars and 240,000 employees, worldwide. Tyco Laboratories began operations in 1960, performing experimental work for the U.S. government. The firm went public in 1964 and quickly expanded, mostly by acquisition, to exploit the commercial applications of its work. Dennis Kozlowski joined the company in 1975 as an assistant controller. The company subsequently shifted its focus from growth to profits within its three primary divisions: fire protection, electronics, and packaging. Kozlowski joined Tyco's board in 1987 and became president and chief operating officer two years later. Kozlowski
…show more content…
Probably the most disturbing thing of all this ordeal was that there was not an individual whistleblower. The scandal was caught by groups that were put in place to prevent dishonesty and to protect investors. The problem with this is that the SEC only caught this once it had already spread extensively. If someone would have blown the whistle sooner this would not have been allowed to spread like it did, and would have been caught much sooner.
D. What was done with the information retrieved?
When this information was uncovered, the company filed a lawsuit against the people that were involved. Kozlowski hired an attorney that defended his actions, citing his immense charitable donations, from money that he had acquired wrongly. Their defense was that they were corporately responsible people, who were shown as criminals by the media. Kozlowski claimed in court that he had acquired all of his perks and money honestly, and said that he had disclosed all of his actions to the company.
E. How did the company and the subject react?
The district attorney, Owen Heimer, asked the judge that no leniency be shown to Kozlowski, because of his excessive spending spree and disregard for the shareholders of the business. Kozlowski stated in his trial for the judge to be as "lenient as possible" and to consider "all the positive things I have done in my life." His lawyer, Stephen E. Kaufman, read

Related Documents