Bloomberg News

Convicted Tyco CEO Kozlowski Moves Back to Manhattan

March 23, 2012

L. Dennis Kozlowski, former CEO of Tyco International. Photographer: Michael Nagle/Bloomberg

L. Dennis Kozlowski, former CEO of Tyco International. Photographer: Michael Nagle/Bloomberg

(Corrects to add new law firm statement describing Kozlowski’s job in third paragraph of story published March 16.)

The new home of felon and ex-Tyco International Ltd. (TYC) Chief Executive Officer Dennis Kozlowski, while not furnished with the $6,000 shower curtain and paintings by Monet and Renoir that decorated his previous Manhattan abode, offers a stunning view of Central Park and the New York skyline.

Convicted in 2005 of looting his company, Kozlowski was transferred from an upstate prison to a minimum-security facility on Manhattan’s 110th Street near Fifth Avenue, on the north border of the park. Kozlowski leaves every weekday morning to participate in a work-release program, said Peter Cutler, a spokesman for the New York State Department of Corrections and Community Supervision.

Alan Lewis, Kozlowski’s lead lawyer and a partner at Carter Ledyard & Milburn LLP, said in an e-mailed statement that the ex-CEO works as a clerk at a software company, revising an earlier comment by partner Michael Shapiro in a telephone interview that Kozlowski worked as a financial consultant. The two attorneys co-chair New York-based Carter Ledyard’s white collar practice, according to its website.

While in prison, Kozlowski has helped other inmates learn to read and to earn their General Equivalency Diplomas, Shapiro said.

Prison Sentence

Kozlowski, still serving a prison sentence of 8 1/3 to 25 years, must return every work night to his new home, known as the Lincoln Correctional Facility, said Cutler. He is permitted to spend Saturday nights outside the prison.

Kozlowski, along with former Chief Financial Officer Mark Swartz, was convicted in June 2005 of securities fraud, grand larceny and falsifying business records.

Swartz also has been transferred to the Lincoln facility and is participating in work-release, according to his lawyer, Charles Stillman. Stillman declined to provide any additional details of his client’s status.

In Kozlowski’s trial, prosecutors told jurors the ex-CEO’s $30 million Fifth Avenue apartment, paid for with Tyco funds, featured the now-infamous shower curtain and a $15,000 umbrella stand. They also detailed his crimes, many of which were committed while working from Tyco’s offices on Manhattan’s West 57th Street, a few miles south of Kozlowski’s new address.

Former Building

The New York Post has reported that Kozlowski’s former building, in the Italian Renaissance Palazzo style, has been home to media and real estate mogul Mort Zuckerman, former Goldman Sachs Group Inc. Vice President Robert Hurst and Starbucks Corp. (SBUX) CEO Howard Schultz.

Kozlowski’s duplex co-op had 11 rooms, including four bedrooms, four and a half bathrooms, four wood-burning fireplaces and an eat-in kitchen. During Kozlowski’s trial, jurors got to see a glimpse of how Kozlowski lived, viewing a 15-minute videotape of the apartment made by prosecutors.

Evidence at trial showed he decorated it with more than $13 million worth of gilded furnishings and a fine art collection that prosecutors said was purchased with Tyco funds.

Tyco, based in Schaffhausen, Switzerland, is the world’s biggest maker of security systems.

The jury, in New York State Supreme Court in Manhattan, found that Kozlowski and Swartz stole about $137 million from Tyco in unauthorized compensation and made $410 million from the sale of inflated stock. An earlier trial resulted in a mistrial after a juror reported receiving threats.

Kozlowski, 65, has his first parole hearing next month and could be released as soon as Aug. 25, Cutler said.

He was transferred to Lincoln from medium-security Mid- State Correctional Facility, in Marcy, in January and started in the work-release program last month, Cutler said.

Lincoln is located in an eight-story building that opened in 1914 as a branch of the Young Women’s Hebrew Association, according to a corrections department profile of the facility. The state took over the property and opened it as a work- and education-release prison in 1976.

To contact the reporters on this story: Bob Van Voris in New York federal court at rvanvoris@bloomberg.net; Patricia Hurtado in New York federal court at pathurtado@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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