September 19, 2005
Tyco executives to be sentenced today
The latest chapter in the saga of modern white collar sentencing will play out today in a New York state court when former Tyco International CEO Dennis Kozlowski and CFO Mark Swartz are sentenced following their conviction on various fraud charges. This AP story and this recent post provides background, and the folks over at White Collar Crime Prof Blog have some thoughtful recent commentary here and here.
Anyone want to suggest what the sentence should be or predict what the sentence will be?
UPDATE: This AP report says that prosecutors have "urged a state judge Monday to sentence former Tyco International CEO L. Dennis Kozlowski to the maximum 15 to 30 years in prison." If such a sentence was imposed, Kozlowski would still be eligible for parole in 12.5 years.
ANOTHER UPDATE: As detailed in this CNN report, Kozlowski and Swartz were sentenced to 8-1/3 to 25 years in prison. In addition, "Kozlowski and Swartz were ordered to pay back $134 million to Tyco while Kozlowski must pay a criminal fine of $70 million and Swartz must pay an extra $35 million." Thanks to the commentors for first putting this info in the comments while I got a bite to eat.
September 19, 2005 at 07:28 AM | Permalink
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Tracked on Sep 19, 2005 4:13:07 PM
CNN is reporting that the two defendants received 8.5 - 25 years in prison and were led from the courtroom in handcuffs.
Assistant Federal Public Defender
Western District of Tennessee
Posted by: Randy Alden | Sep 19, 2005 12:53:43 PM
both got 8 1/3rd to 25
kos got 70 million fine
swartz got a 35 million fine
Posted by: brian kleinhaus | Sep 19, 2005 12:55:16 PM
I think these sentences are in the vicinity of what they should be. If I were the judge, I would have imposed a sentence of 5 yrs and 11 months, to avoid triggering assignment to maximum security (which comes in at 6 years). At 8 and change, the judge isn't too far out of the ballpark.
Posted by: Marc Shepherd | Sep 19, 2005 4:02:09 PM
What sense does it make to impose resitituion when they are keeping them behind bars and unable to work to make payments?
Is restitution realistic?
I say, cut them lose after an appropriate time period then make them work until they can't any longer and make those payments.
That makes more sense than the very citizens they harmed paying to keep them and their families.
The BOP is always running in the red. Federal sentences are too excessive when compared to state sentences for similar crimes. It's time to level this out, stop building more prisons and make the sentences fit the crime.
Posted by: ST | Sep 20, 2005 11:17:35 AM
ST asked, "What sense does it make to impose resititution when they are keeping them behind bars and unable to work to make payments?"
The purpose of restitution in this case is to establish a claim on the considerable assets these guys still have. The idea of letting them go free, so that they can "work to make payments," is not realistic here. Whether in prison or not, they are essentially unemployable.
It's pretty well known that restitution orders are usually not satisfied. Still, it serves a symbolic purpose, and ensures that whatever they *do* have goes to the right places. Between the criminal and civil cases against the Tyco boys, they are likely to be bankrupt.
Posted by: Marc Shepherd | Sep 20, 2005 2:51:59 PM
Posted by: | Oct 14, 2008 9:30:50 PM