How Did They Do It
What 3 people were involved in the majority of the stealing?
CEO Dennis Kozlowski, CFO Mark Swartz and general counsel Mark Belnick
How much money did Dennis Steal?
He stole over 100 million dollars
An internal investigation revealed the over 600 million of stolen money
What did the previous CEO and Dennis have in common?
They were both using company funds to fund their lavish lifestyles
What tactics did Dennis use to get his managers to do what he wanted?
He was aggressive and pressure heavy on them to get them to comply with the illegal practices he was doing
How much money did he spend on his wife's birthday party?
Dennis spend approximately 2 million dollars on his wife's birthday party
When was Tyco International founded?
1960
What technique did Tyco use to inflate their earnings?
Tyco used "Spring Loading" to inflate their earnings
What job did Mark Belnick have at the time?
He was General Counsel
Who did Dennis replace to allow him to commit fraud?
He fired previous managers and directors to hired those that shared his values and weren't against him stealing from the company
What concept did he violate that is super important to accounting standards?
The Business Entity Concept
What was found in Dennis Kozlowski apartment that tipped off authorities?
Many paintings that were invoiced for Tyco International
Who founded Tyco International?
Arthur J. Rosenberg