The American businessman and convicted felon Dennis Kozlowski was once worth an estimated $600 million. For twenty years, Dennis Kozlowski led Tyco International as its chief executive officer.
Dennis became widely known for his extravagant parties and lifestyle while serving as CEO of Tyco, which were paid for by the company. In the midst of a major financial fraud scandal, he resigned in 2002. After Kozlowski’s 2005 conviction and subsequent nine-year prison term, he was released on conditional status in early 2014.
Over $80 million in unjustified bonuses and paychecks led to his trial and conviction. Along with authorizing a fraudulent $20 million payment to a Tyco investment banker, he was also found guilty of illegally receiving artwork valued at $14 million. His prison term will take place at Mid-State Correctional Facility and will last anywhere from 8 to 25 years.
One of Dennis Kozlowski’s most well-known lavish purchases was a $30 million New York City condominium, which was paid for by Tyco. One of the apartment’s most recognizable features was a $6,000 shower curtain and a $15,000 dog umbrella stand.
Tyco also threw Dennis’ ex-wife a $1 million birthday party on the Italian island of Sardinia. Aside from the over $150 million in cash and bonuses he received from Tyco, Dennis made an additional $430 million by manipulating the stock price of the company. Kozlowski was sentenced to prison time and fined $70 million by the United States government in addition to paying back $134 million to Tyco.
Contents
What is Dennis Kozlowski’s Net Worth?
| Net Worth: | $600 Million |
| Date of Birth: | Nov 16, 1946 (76 years old) |
| Place of Birth: | Newark |
| Gender: | Male |
| Profession: | Film Producer |
| Nationality: | United States of America |
Dennis Kozlowski’s Early Life and Education.
Leo Sr., who worked for the Public Service Transport, and Agnes, who worked for the Newark Police Department, had their son Dennis (then known as Leo Dennis Kozlowski) on November 16, 1946, in Newark, New Jersey. His mother and father were both Polish Americans of the second generation. Kozlowski attended Seton Hall University in South Orange, New Jersey when he was a young adult.
Tyco International
Tyco International hired Kozlowski in 1975, and by 1992, he was the company’s CEO. During his tenure as CEO, the company grew substantially thanks to several strategic mergers and acquisitions. In the 1990s, Tyco bought a number of different companies, including Preferred Pipe, Thorn Security, Sempell, Raychem, Wormald International, Tectron Tube, ElectroStar, Submarine Systems, and Professional Medical Products. After a reverse takeover merger with ADT in 1997, Tyco relocated its corporate headquarters to the tax haven of Bermuda.
General Surgical Innovations, AFC Cable, Siemens Electromechanical Components, and Mallinckrodt were just a few of the many companies that Kozlowski and Tyco bought in the new millennium. Despite Tyco’s many acquisitions, the company nonetheless lost a staggering $3 billion during the 2002 fiscal year.
Tyco Scandal
A major financial fraud scandal forced Kozlowski to retire as Tyco’s CEO in 2002. It was claimed that the corporation had broken the Securities Exchange Act by exaggerating its financial results and neglecting to disclose material facts.
Both times Kozlowski stood trial, he denied any wrongdoing on the part of the company while serving as CEO. He and former Tyco CFO Mark Swartz were found guilty of securities fraud, grand larceny, and fabricating corporate records in 2005, despite his protests. Kozlowski’s specific offenses were the receipt of $81 million in bonuses and the payment of a $20 million investment banking charge to a former director of Tyco.
Prison Sentence
The highest court in Manhattan handed down a sentence of 8–25 years to Kozlowski for his offenses. In addition, Kozlowski was fined $70 million and Swartz was fined $35 million, for a combined total of $134 million in restitution. After that, Kozlowski spent nearly six years in prison in New York’s Mid-State Correctional Facility in Marcy. He was denied release from prison in the spring of 2012. Kozlowski was then moved to New York City’s Lincoln Correctional Facility, where he remained until his conditional release in the early months of 2014.
Faithless Servant Doctrine
Tyco sued Kozlowski as a result of his misdeeds. The lawsuit was successful, and Kozlowski was ordered by the court to return the $500 million in compensation and benefits he received during his time of disloyalty. New York’s faithless servant doctrine allows for this by requiring disloyal employees to repay all compensation they received during their time of disloyalty.
Dennis Kozlowski’s Personal Life.
Kozlowski’s extravagant lifestyle at Tyco earned him notoriety and comparisons to the excesses of ancient Roman emperors. According to reports, he had his company foot the bill for his $30 million residence in New York City, complete with $6,000 shower curtains and other extravagant features.
He also purchased a beachfront mansion in Nantucket and several acres in the Sanctuary, a luxury gated neighborhood near Boca Raton, Florida. Kozlowski kept having Tyco pay for his lavish lifestyle, which included throwing his wife, Karen, a $1 million birthday party. An ice sculpture of Michelangelo’s “David” urinating vodka was present at the celebration, which was held on the Italian island of Sardinia and featured a private concert by Jimmy Buffett.