Tyco International Case Study

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Tyco International Ltd was one of the well-renown companies in America for their security systems, fire protection and healthcare. The company was founded in 1960, but it was not until 1964 did Tyco went public to rapidly expand their acquisition. Later in the years, Dennis Kozlowski was employed to the company as an associate controller, which he then moved up to Tyco’s board to become the president and chief operating office. At the same time, the Tyco International decided to change its attention from expansion to revenue. Later on, Kozlowski was appointed as chief executive office (CEO) in 1992; he became a great successor for diversifying the organization into healthcare. In acknowledgement of, Kozlowski hard work he brought Tyco to become the second largest producer of medical devices in North America during 2001, which led them …show more content…

But, it was not until 1999 when the Securities and Exchange Commission (SEC) administrated a probe on the unethical behaviour of Kozlowski and Mark Swartz, the chief finance officer (CFO) for allegedly stealing from Tyco. The company was informed by the district attorney Morgenthau, that Kozlowski was under investigation due to taxes evasion on expensive paintings. According to the case “the purchase price of the Monet was $3.9 million. The paintings were bought in New York and sent to Tyco’s headquarters in New Hampshire in order to avoid paying New York sales tax, which was inapplicable to goods sent out of state” (Markham, 2006). Leading attorney Morgenthau to become aware of Kozlowski’s personal transaction, which Tyco paid for. As a result, Kozlowski was indicted and charged with looting $600 million from Tyco International; specifically, throwing a $2.1 million dollar birthday party for his newly wife on the Mediterranean island, $15,000 on a “dog” umbrella stand, and an infamous $6,600 shower curtain

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