Aside from other accounting scandals that have dealt with falsifying books, increasing revenues without the funds, purposely reporting false allowances for vendors, etc. This scandal involves stealing money from the Tyco corporation. In other words, this case involves the need for greed.
Tyco's former CEO Dennis Kozlowski and ex-CFO Mark Swartz were found guilty of stealing hundreds of millions of dollars from the company. Kozlowski and Swartz were sentenced to 15 to 30 years in prison. This verdict came as a shock to the family and the defendants but not to Tyco employees. Kozlowski and Swartz maintain that they committed no crime.
Kozlowski and Schwartz ran the company from the 1990's through 2002. During this time, they were accused of taking $120 million of company bonuses, taking advantage of the employee loan program, and misrepresenting the financial condition to the investors. Kozlowski threw a $2 million party for his wife and purchased a $6,000 shower curtain with company funds. What kind of shower curtain costs that amount of money?
The verdict devastated Kozlowski's wife and daughter. While Kozlowski maintains his innocence, his wife was in shock and crying. His daughter buried her face in shame and disappointment. This is a hard blow to take, however, consequences are tough to accept.
I am going to speak honestly on this accounting scandal. I have bitter sweet emotions about this case. I am glad that the conspirators in this scandal were prosecuted and sent to prison. However, I feel for the families that have to endure this shocking out outcome of this case. These men were a husband and father. What were these men thinking? These cases need to be wise indications of stupidity. If something is done in the dark, it will eventually come to light.
