Former Tyco CEO Kozlowski denied parole

NEW YORK Thu Apr 5, 2012 6:38pm EDT

Former chief executive of Tyco International Dennis Kozlowski (R) leaves New York State Supreme Court in New York City, June 17, 2005. REUTERS/Seth Wenig

Former chief executive of Tyco International Dennis Kozlowski (R) leaves New York State Supreme Court in New York City, June 17, 2005.

Credit: Reuters/Seth Wenig

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NEW YORK (Reuters) - Dennis Kozlowski, the former Tyco International CEO whose $6,000 shower curtain made him a symbol of corporate greed, was denied parole this week, New York's Department of Corrections said on Thursday.

Kozlowski, 65, is serving a sentence of 8-1/3 to 25 years for looting Tyco International of more than $100 million. He has been behind bars for more than six years.

The state's Parole Board said after a hearing on Tuesday that Kozlowski's release would "deprecate the seriousness" of his crimes and "undermine respect for the law."

Kozlowski was convicted in 2005 of grand larceny, securities fraud and other charges. He stole $137 million from Tyco in unauthorized bonuses, abused company loan programs and sold more than $400 million in inflated stock.

Alan Lewis, an attorney for Kozlowski, said in a statement that his client was "deeply disappointed" by the decision. Kozlowski disagrees with a board finding that his parole would compromise public safety, the statement said.

He has served most of his time at Mid-State Correctional Facility in Marcy, New York, about 250 miles north of New York City.

Since January, he has been at Lincoln Correctional Facility in New York City. He leaves the facility for work on weekdays. It is unclear what he does. He also is authorized to leave on Saturday mornings for a Sunday night return, according to the state Department of Corrections.

In addition to hearing about his $6,000 shower curtain and $15,000 umbrella stand, jurors at Kozlowski's trial saw videotape of a $2 million party he threw in 2001 for his wife on the island of Sardinia. It featured an ice sculpture of Michelangelo's David spewing vodka from his private parts.

Kozlowski and his wife, Karen, divorced after he was jailed.

If approved for release, Kozlowski would have obtained his freedom in August. He will not come before the Parole Board again until April 2014. The board said he had a clean disciplinary record.

His co-defendant, Mark Swartz, Tyco's former chief financial officer, has a Parole Board hearing in September. Swartz is also at Lincoln on work release.

(Reporting By Karen Freifeld, editing my M.D. Golan)

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