By: Michael Seinberg
You’re a convicted felon. You’re in prison for up to 25 years for looting the company you worked for. But you don’t give up do you? Nope, not if you’re Mark Swartz, former CFO of Tyco International who just sued Tyco for $60 million in retirement and other money he claims he’s owed.
Swartz, who is just one of the many jailbird plaintiffs we have covered at LRANY, has accused Tyco of breach of contract and unjust enrichment for not paying him $48 million from an executive retirement agreement as well as $9 million in reimbursement for New York taxes, and other money. What other money? Greens fees? Tennis lessons?
Keep in mind that Swartz was CONVICTED of grand larceny and securities fraud in 2005, along with his prison mate former Tyco CEO Dennis Kozlowski. Both are currently bunking down at a minimum-security facility in New York City (can you say club-fed?). Just so you know how tough Kozlowski has it, he’s on a furlough schedule where he can leave on Wednesdays and not have to come back to jail until Monday. Thank goodness he still has his weekends free, we wouldn’t want his golf game to suffer.
Tyco, not a company to sit still and take this abuse, has filed suit against Swartz and that case is scheduled for trial in September. That case will determine how much Swartz has to pay the company back. Swartz has already paid Tyco $72 million in court-ordered restitution and fines as part of the original sentence. In a similar suit against Kozlowski, a judge dismissed his counterclaims for pay and benefits after 1995.
Swartz was CFO from 1995 through 2002 and was indicted in September 2002 and convicted in June 2005. In his suit, he claims that Tyco knew he was going to be criminally charged when they approved his main contract and thus, he feels rather wronged.
Kozlowski was denied parole in April and at his hearing he admitted he had developed, ”A wrongful sense of entitlement and greed.” Wow, he finally said something true. Of course for a guy who once paid $6,000 for a shower curtain that might also be seen as a monumental understatement.
One wonders what Swartz will say at his parole hearing. Hopefully they’ll schedule it on a Tuesday, so he doesn’t have to rearrange his schedule too much.