SEC Settles Fraud Case With Former Tyco Executives

Former Tyco International (TYC)executives L. Dennis Kozlowski and Mark H. Swartz have been in jail since 2005, but on Tuesday federal securities regulators officially barred them from the business.

In a press release, the Securities and Exchange Commission said it had entered final judgments against Kozlowski, the former chief executive, and Swartz, the former chief financial officer, for their roles in the massive accounting fraud.

The judgments bar the men for life from serving as a director of a public company and enjoin them from violating securities laws. The SEC had accused them in its civil case of failing to disclose hundreds of millions in executive indebtedness and executive compensation.

They were convicted for their roles in the criminal case and sentenced to serve terms of 8 ½ to 25 years. They also paid $134 million in restitution to Tyco and criminal fines of $70 million and $35 million, respectively.

The final settlements are still subject to approval by a federal New York judge.

-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; [e-mail]