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To: stockman_scott who wrote (4560)	8/14/2002 11:34:22 PM
From: Jim Willie CB	Respond to of 89467

Tyco probe may expand (attention: Volt et al) Authorities may look at other executives and could charge former CEO with additional crimes. August 13, 2002: 7:58 AM EDT NEW YORK (CNN/Money) - The investigation into Tyco International Ltd. may include additional charges against its former CEO and may expand to include other company officials, according to a published report Tuesday. Manhattan District Attorney Robert Morgenthau's office is considering whether other Tyco executives improperly profited from the company, but the office would not identify possible new targets, according to USA Today. Tyco's former CEO, Dennis Kozlowski, was charged, and pleaded not guilty, in June with evading more than $1 million in New York State sales taxes. The new charges may include the more serious charge of grand larceny, according to the paper. The larceny charge is connected with spending of more than $11 million for art and decorating of an $18 million Manhattan apartment that was bought for Kozlowski with Tyco funds. Money from the company was also used to buy Kozlowski's home in Boca Raton, Fla., and in New Hampshire, the newspaper reported. News of the possibly expanding probe comes as the manufacturing conglomerate cleans house in its executive ranks. The company recently hired Motorola's (MOT: Research, Estimates) former president Edward Breen as CEO and its chief financial officer recently resigned from the company. Tyco also added DuPont's (DD: Research, Estimates) chairman, John Krol, to its board and named Eric Pillmore as senior vice president of corporate governance. Shares of Tyco (TYC: Research, Estimates) gained 46 cents Monday to close at $12.69.

To: stockman_scott who wrote (4560)	8/14/2002 11:37:18 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

Ex-Salomon analyst may sue Claims he was fired for resisting pressure from banking side (lawsuit, not from shholders, SSB is a Citigroup sub) Sinclair Stewart, Financial Post Monday, August 12, 2002 A former analyst at Salomon Smith Barney Inc. may take legal action against the brokerage firm that he claims fired him for resisting pressure from a pair of investment banking colleagues to alter a research report. Kenneth Boss told The New York Times he may sue Salomon, which he said dismissed him in June shortly after he refused to write a "more upbeat" report on three office furniture stocks, two of which had issued debt offerings led by the firm. Salomon denies the allegations. The dispute comes amidst growing public skepticism over the reliability of analyst reports, and demonstrates how difficult it will be for regulators to enforce the so-called Chinese wall separating research and investment banking divisions. Mr. Boss said he was asked by his supervisor, Stephen Kim, to put his report on an internal network so it could be reviewed by the investment bankers. When he refused, one of the bankers allegedly came into his office and read the research note on Mr. Boss' computer. The analyst said the banker was "agitated" by the report, which suggested the furniture companies could face lacklustre sales until the suffering economy reversed direction. A spokeswoman for the brokerage said Mr. Boss was fired for failing to meet certain performance goals, and insisted his report received no pressure from investment bankers. Nevertheless, the allegations are embarrassing for Salomon, which has declared itself an early adopter of new reforms designed to protect research from being influenced by banking objectives. In the spring, Merrill Lynch & Co. struck a US$100-million settlement with Eliot Spitzer, the , New York Attorney General, over allegations the firm's analysts privately trashed stocks they were touting, and issued favourable ratings in order to win lucrative underwriting fees. Canadian and U.S. regulatory bodies responded with tightened guidelines for analyst conduct, which include provisions that prohibit linking analyst pay with specific investment banking deals. The Securities and Exchange Commission went a step further earlier this month, proposing a new rule that would force analysts to personally certify their research reports and provide guarantees that their ratings are completely independent of their compensation. The provisions closely mirror recently introduced laws requiring top company officials to vouch for their financial statements. John Nester, a spokesman with the SEC, said he is confident the proposal will be adopted, and said analysts who make misleading disclosure could face suspensions, fines, or other penalties. "It serves to remind them that they are personally responsible for the statements they make."