Report: Ex-Tyco CEO May Be Charged
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NEW YORK (AP) _ New York prosecutors are considering filing criminal charges against a former Tyco International executive who received a multimillion dollar payment for helping the company acquire its CIT lending unit last year, a published report said.
The Wall Street Journal reported Thursday that prosecutors may file charges against Tyco’s former director, Frank E. Walsh Jr., for failing to disclose two $10 million payments.
Last year, Tyco gave Walsh $10 million in cash and provided an additional $10 million at his request to the Community Foundation of New Jersey. Walsh is a trustee of the charity.
The Journal cited people familiar with the inquiry as saying that Walsh may have broken the law by failing to disclose the payments.
Walsh’s lawyer, Laurence Greenwald, told the paper that prosecutors have not yet questioned the former director, who left his position in February, the month after the payment became public.
Walsh has said the payment was negotiated directly with the company’s former chief executive, L. Dennis Kozlowski, and that it had been disclosed.
Kozlowski resigned June 3, a day before he was indicted on sales tax evasion charges in New York involving the purchase of art that cost $13 million. He and other former executives are scheduled to appear before a Manhattan judge Thursday for a bail hearing.
In June, Tyco filed a lawsuit in federal court in Manhattan against Walsh, alleging that he arranged the unauthorized $20 million ``finders fee″ from Tyco, hid it from his fellow directors and refused to return it after being confronted by the board early this year.
Tyco, based in Bermuda but with headquarters in Exeter, N.H., has more than 270,000 employees and makes products ranging from undersea fiberoptic cable to coat hangers.
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