Case Analysis Tyco Kozlowski - 892 Words

1. The down fall of Tyco’s CEO Kozlowski come when he tried to cheat the government of nearly 1 million dollars in sales tax on a large art purchase. He did this by faking the shipping address of the paintings and mailing empty boxes to a state with no sales tax. In reality he just sent the painting to his New York apartment. In 2002 a Manhattan attorney accused Kozlowski of doing so which lead to a much deeper case into Tyco and their CEO. He was then accused of stealing millions from the company by borrowing it from their loan program and giving himself unauthorized bonuses. He went on trial twice where he was sentenced 8 to 25 years in prison and millions in restitution. 2. Kozlowski justified his actions and wrong doing by blaming it on the time. In 2001 when people began to lose money in the stock market due to different things such as WorldCom and Enron declaring bankruptcy people wanted someone to blame. Kozlowski believes that he became the one person that everyone pointed there finger at to blame. He still believes that he did nothing wrong, that he earned all of his bonuses and money. 3. Some of Kozlowski’s actions were black and white but on the other hand there were some actions in the grey areas. There is no doubting the fact that he illegally shipped his collection of paintings in order to avoid paying sales tax on the purchase. Then there are other actions that cannot be justified quite as easy. I do believe that Kozlowski cheated his company out ofShow MoreRelatedThe Third Ethical Issue Of Tyco Case1695 Words   |  7 PagesThe third ethical issue in Tyco case that relate to conflict of interest is accounting fraud. Accounting fraud can be described as any act or attempt to manipulate the financial statement for financial gain. It can be one of the legal issues in this case because it consists of fraud which is unlawful in written law. 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