• founded in 1962 Security and Engineering Services Manufacturing and Service Company ( Security Installation and Fire Protection)

Scandal

• 3 top level managers siphoned the company’s money

• Unapproved loans, stock fraud, and tax evasion

• 40 employees were given hush money to prevent exposure of crimes

• September 12, 2002

  • Kozlowski& Swartz were arrested & were charged for stealing more than $430 million from fraudulent sales & concealing it from shareholders

  • Belnick was charged with $14 million in personal loans

People Involved

• CEO : Dennis Kozlowski pay 70 million fine to Tyco June 17, 2005 convicted & imprisoned

• CFO: Mark Swartz pay 35 million fine convicted & imprisoned

• CLO: Mark Belnickpay 500,000 fine & banned for 5 years

• 40 other employees forgiven