Kozlowski may face grand larceny charges

Prosecutors in New York could file additional charges against former Tyco International chief executive Mr L. Dennis Kozlowski, including grand larceny, sources close to an investigation said yesterday.

Other people connected with Tyco could be charged with falsifying business records to assist Mr Kozlowski, the sources said. The sources declined to be more specific and couldn't say when any charges would be filed.

A call to Mr Kozlowski's attorney was not immediately returned.

Earlier this week, the Wall Street Journal reported that Mr Kozlowski used $135 million (€139 million) of Tyco money to pay for a lavish lifestyle that included the purchase of yachts, mansions and artwork.

The money was borrowed from a special Tyco fund and, in some cases, was forgiven or never repaid, the article said. It also alleged that Mr Kozlowski used company money to fund what were passed off as personal donations to charities and local causes.

"The big question is did he have permission to take the money?" one of the sources asked. "If not, it's stealing."

Sources close to Mr Kozlowski deny he misspent company money for personal gain, according to the US newspaper. They claim the former Tyco boss entrusted his financial interactions with the conglomerate to company officials.

If he was charged with grand larceny and convicted, he could face up to 25 years in prison in addition to any prison time he'd have to serve were he convicted of previous charges involving dodging state sales taxes.

Mr Kozlowski served as chief executive of Tyco from 1992 until this year, raking in several hundred millions of dollars in salary as he built it from a little-known company into a sprawling international conglomerate whose products include garbage bags, healthcare equipment and ADT burglar alarms.

He resigned in June, a day before New York prosecutors indicted him for scheming to avoid $1 million of sales tax on artwork by such masters as Monet and Renoir. - (Reuters)