So many posts...so little substance.
I guess this sudden activity is in honor of Elgindy's release from bondage. By the way Mr. Elgindy, congratulations and best of luck to you.
In keeping with the spirit of the moment, below is a an article on Tyco executives sitting in jail. It's instructive to see that the Feds are getting pretty tough on bail requirements with those accused of playing financial 'shenanigans'.
cbs.marketwatch.com{F36EAAB0-FC86-4D5A-AAEE-F4E2E2BB1478}&siteid=go2net
Tyco's former bosses could sit in jail
By CBS.MarketWatch.com
Last Update: 11:45 AM ET Sept. 18, 2002
NEW YORK (CBS.MW) -- The "perp walk" could turn into the "perp sit."
Former executives accused of looting Tyco (TYC: news, chart, profile) of millions of dollars could be sitting in jail for a while if they can't persuade a judge to change his mind about the terms for posting bail.
Last week, a state judge ordered Dennis Kozlowski, the conglomerate's former chief executive, to be jailed pending payment of a $100 million bond. Bail for Mark Swartz, the former chief financial officer, was set at $50 million.
To make sure they don't use the proceeds from criminal activity to make bail, Supreme Court Justice Michael Obus has refused to let them use their personal financial assets.
Attorneys for the defendants were livid over the judge's restrictions.
"He's got more assets than Custer had Indians," but he can't get to them, complained Stephen Kaufman, an attorney for Kozlowski. "He can't even go to an ATM."
"We find ourselves in essentially the same situation," said James Mitchell, Swartz's lawyer. The two executives have until Thursday to post 10 percent of their bond as security so they can leave jail while awaiting trial on fraud and corruption charges.
In a hearing Tuesday, Kaufman said Kozlowski's ex-wife, Angie, had offered to put up her $10 million home in Greenwich, Conn., or $10 million in municipal bonds as security, but prosecutors objected.
"It is quite obvious that that the source of the funds is the defendant," Assistant District Attorney John Moscow said.
Obus told the attorneys that it appeared to him that some of the collateral being offered was not covered by his earlier order. He told them to return Thursday, post the bond, and if Moscow objects, he would hold a hearing on whether it is acceptable.
Kozlowski and Swartz were charged last week with enterprise corruption and grand larceny for alleged theft of some $600 million from Tyco. They face up to 25 years in prison on each of those charges if convicted.
Tyco's former general counsel Mark Belnick was charged at the same time with falsifying business records to cover up $14 million in improper loans. He faces up to four years in prison.
Prosecutors filed criminal charges against the men soon after the Securities and Exchange Commission accused them of hiding huge loans and other money they allegedly took out of Tyco, which is headquartered in New Hampshire.
Tyco reported in a filing to the SEC that Kozlowski used $242 million from an employee loan program, established to help workers buy Tyco stock, and to pay for yachts, fine art, jewelry, luxury apartments and vacations.
Kozlowski had already been indicted in June on charges of evading New York sales taxes on $13 million in art, including works by Renoir and Monet. He resigned from Tyco one day before being indicted. He has pleaded innocent in that case.
Shares of Tyco fell 67 cents, or 3.9 percent, to $16.22 in midsession trading.
The Associated Press contributed to this report. |
