Tyco lawyer on $12m theft charge

Mr Mark Belnick, who was chief corporate counsel at Tyco, was yesterday charged with stealing $12 million (€11.15 million) from the US conglomerate.

Manhattan district attorney Mr Robert Morgenthau said Mr Belnick was paid a $12 million bonus for terminating a Securities & Exchange Commission investigation into Tyco's accounting in 2000. He was accused of grand larceny, which carries a sentence of up to 25 years in prison.

The new charge is the latest facing Tyco's former leaders. In September, Mr Dennis Kozlowski, former chief executive, and Mr Mark Swartz, former chief financial officer, were accused of theft and fraud amounting to $600 million. The charges, which both men denied, carry sentences of up to 30 years in prison.

At that time, Mr Belnick was charged with falsifying records to conceal illicit loans worth $14 million. Yesterday's indictment supersedes those charges.

Mr Morgenthau said Mr Belnick should have been advising Tyco on what was and was not legal. Instead, he said, "the watchdog is in the chicken coop chasing the chickens along with the chief executive officer and chief financial officer, and nobody in this group is protecting shareholders".

Wearing handcuffs in court, Mr Belnick pleaded not guilty.

His lawyer, Mr Reid Weingarten, said: "We're disappointed and somewhat puzzled by these charges. The DA's office doesn't approve of anybody who gets a bonus for good work - they say that's grand larceny."

The district attorney also charged Mr Belnick with falsifying business records by failing to disclose a $2.5 million payment from Tyco for the Florida home of Lord Ashcroft, then a director of the group. It is understood Lord Ashcroft only learned later that ownership of the house was transferred to Tyco.

Mr Morgenthau said there was no plan "at this time" to bring charges against Lord Ashcroft