Things got much deeper today for former Tyco
The accusations are staggering. Kozlowski and Swartz allegedly schemed to steal $170 million from Tyco, while gaining over $400 million in fraudulent stock sales. According to Stephen Cutler, the SEC's director of enforcement, the three executives "treated Tyco as their private bank, taking out hundreds of millions of dollars of loans and compensation without ever telling investors."
The company itself has filed charges against Kozlowski in an attempt to get some of the money back. "Kozlowski was in charge of the enterprise," said Manhattan District Attorney Robert Morgenthau, "and looted the company by granting himself and others excess compensation."
As we mentioned a couple of days ago, thieving, looting executives have a far greater effect on the markets than terrorists. With today's indictments, at least we're seeing some of the alleged criminals being held accountable for their actions.