Former Tyco International Ltd. (TYC:US) Chief Executive Officer L. Dennis Kozlowski was denied a new parole hearing by a New York state appeals court in a reversal of a lower court’s ruling.
Kozlowski was sentenced to 8 1/3 to 25 years in prison in 2005 after a jury trial in Manhattan. He began serving his sentence in September of that year. The parole board denied Kozlowski’s request for parole in April 2012 “due to concern for the public safety and welfare.”
Kozlowski sued in October, saying the board relied on erroneous information in making its ruling. State Supreme Court Justice Carol Huff in February annulled the decision and sent it back for a new hearing. The state appealed, saying that Kozlowski’s crimes were too serious to allow his release from prison yet.
A panel of five appellate judges in Manhattan overturned Huff’s ruling in a decision dated today, saying the denial of parole was “rational.”
“The record demonstrates that respondent considered the required statutory factors and adequately set forth its reasons for the denial, which include its conclusion that petitioner’s release would ‘tend to deprecate the seriousness of the instant offenses and undermine respect for the law,’” the appeals court said.
Alan Lewis, an attorney with Carter Ledyard & Milburn LLP representing Kozlowski, declined to immediately comment on the decision in a telephone interview. The state attorney general’s office, which represented the parole board, didn’t immediately respond to an e-mail seeking comment.
Kozlowski became the face of corporate greed when the government pointed to luxuries paid for with Tyco funds including a $30 million Fifth Avenue apartment with a $6,000 shower curtain, a $15,000 umbrella stand and paintings by Claude Monet and Pierre-August Renoir.
A jury in New York State Supreme Court in Manhattan found that Kozlowski and ex-Chief Financial Officer Mark Swartz stole about $137 million from Tyco in unauthorized compensation and made $410 million from the sale of inflated stock.
The case is Kozlowski v. New York State Board of Parole, 104097/2012, New York State Supreme Court, New York County (Manhattan).
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