Former Tyco International Ltd. (TYC:US) Chief Executive Officer L. Dennis Kozlowski, who was convicted in 2005 of looting the company, will be freed in January, New York corrections officials said.
The state’s Board of Parole granted Kozlowski, 67, release today following an interview, the state’s Department of Corrections and Community Supervision said in an e-mail. The tentative release date for Kozlowski is Jan. 17, when he will have served the minimum of his 8 1/3-to-25-year sentence.
“Mr. Kozlowski is grateful to the parole board for its decision,” his attorney, Alan S. Lewis of Carter Ledyard & Milburn LLP, said in an e-mail.
Kozlowski agreed to “seek, obtain and maintain employment and/or an academic vocational program” after his release, to submit to substance abuse testing and not to consume alcoholic beverages, according to the department. He also must comply with a curfew and isn’t allowed to associate with the victim and an associate in the case, who weren’t identified in the e-mail.
He also consented to complying with court orders imposing fines, surcharges and restitution and won’t act in a fiduciary duty or have a checking, savings, debit or credit card account without his parole officer’s permission, according to the department.
Kozlowski had sued the parole board in October 2012 after it denied his request for early release due to “concern for the public safety and welfare.” State Supreme Court Justice Carol Huff in February sent the decision 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 in July overturned Huff’s ruling, saying the denial of parole was “rational.” The transcript of Kozlowski’s appearance before the board today will be public later this month.
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-Auguste Renoir.
Jurors at his trial in New York State Supreme Court in Manhattan saw a video of a $2 million birthday party Kozlowski threw for his wife on the Italian island of Sardinia in June 2001, financed in part by Tyco. The party featured an ice replica of Michelangelo’s “David,” with vodka flowing from its penis, and a concert by singer Jimmy Buffett.
The jury found that Kozlowski and ex-Chief Financial Officer Mark Swartz, 53, stole about $137 million from Tyco in unauthorized compensation and made $410 million from the sale of inflated stock. They were both sentenced 8 1/3 to 25 years in prison.
Kozlowski was transferred in January 2012 to the minimum-security Lincoln Correctional Facility on 110th Street near Fifth Avenue in Manhattan from the medium-security Mid-State Correctional Facility in Marcy, New York, according to state records.
Swartz, who is also being held at Lincoln, was granted parole in October and also has a tentative release date of Jan. 17. Swartz in May of 2012 sued Schaffhausen, Switzerland-based Tyco, which makes security systems, seeking to recover $60 million he said he’s owed under agreements he made with the company when he stepped down in 2002.
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