What is Dennis Kozlowski’s Net Worth?
Dennis Kozlowski is an American businessman and convicted criminal with a the highest income of 600 million dollars. Dennis Kozlowski served as the CEO of Tyco International for two decades. While he was the CEO at Tyco, Dennis gained considerable recognition for his lavish events and lifestyle, which were paid for by Tyco. He was arrested in the year 2002 and quit after a major scandal that involved financial fraud. Kozlowski was found guilty in 2005 and spent nine years in jail before his release conditional in 2014.
He was later indicted and found guilty of receiving extraordinary bonuses and payments totalling over $80 million. He was also found guilty of receiving illegally $14 million worth of artwork and fraudulently approving a $20 million cash payment to an Tyco investor banker. He was sentenced to between 8 and 25 years in prison in the Mid-State Correctional Facility.
Dennis Kozlowski’s most famous extravagant extravagances included the 30 million NYC apartment, which was purchased by Tyco. The apartment was famously decorated with the shower curtain at $6,000 as well as a $15,000 dog umbrella.
Tyco also invested $1 million in an extravagant 40th birthday celebration for Dennis the former wife of Dennis in Sardinia, the Italian island known as Sardinia. In all, Dennis received more than $150 million in cash and bonus payments from Tyco and also earned $430 million from artificially increasing the stock price of the company. Along with jail sentence, Kozlowski had to repay $134 million to Tyco as well as a $70 million penalty in the direction of government officials. US government.
Early Life and Education
Dennis Kozlowski was born as Leo Dennis Kozlowski on November 16, 1946 , in Newark, New Jersey to Leo Sr., who was employed by his employer, the Public Service Transport, and Agnes who was employed by his employer, the Newark Police Department. The parents of both were second generation Polish-Americans. When he was a young adult, Kozlowski attended Seton Hall University in South Orange, New Jersey.
As of 1975, Kozlowski became a part of the security equipment firm Tyco International; later, in 1992, he was appointed the company’s CEO. In his post, he guided the company through an enormous expansion, fueled by a number of acquisitions and mergers. In the 1990s, Tyco acquired such companies as Preferred Pipe; Thorn Security; Sempell; Raychem; Wormald International; Tectron Tube; ElectroStar; Submarine Systems; and Professional Medical Products, among numerous other. in 1997, Tyco was merged through a reverse merger with the security company ADT which resulted in shifting its incorporation to the tax-free island of Bermuda.
Kozlowski as well as Tyco continued to buy companies into the next millennium. They made notable acquisitions that included General Surgical Innovations, AFC Cable, Siemens Electromechanical Components and Mallinckrodt. However, despite the myriad of deals, Tyco incurred major losses in addition with a loss of $3 billion during 2003’s fiscal year.
The year 2002 was the time Kozlowski quit as Tyco CEO following a huge investigation into financial crimes. Tyco was accused of be in violation of lawful Securities Exchange Act by failing to release crucial financial data and reporting earnings that were overinflated. Kozlowski himself was twice tried and during his trials in both trials, he denied ever having committed any crime while CEO.
In spite of his assertions that he was innocent, he and the former Tyco CFO Mark Swartz were convicted in 2005 of a variety of charges, including grand larceny, fraud in the securities industry and falsifying business records. The specific crimes committed by Kozlowski were getting $81 million of untrue bonuses, and also paying the former Tyco Director Frank Walsh a $20 million investment bank fee.
For his infractions, Kozlowski was sentenced by the Manhattan Supreme Court to eight-to-25 years in prison. Additionally the two Swartz received orders to make a sum of $134 million as Restitution and Kozlowski being imposed a further fine of $70 million and Swartz 35 million dollars in fines. Kozlowski was later taken to Mid-State Correctional Facility in Marcy, New York, where the prisoner served 6 years on his prison sentence. At the beginning of spring 2012 the parole was denied to him. Kozlowski was later moved to Lincoln Correctional Facility in New York City He remained there until his release condition was granted in the beginning of 2014.
Faithless Servant Doctrine
In a different repercussion of his deeds, Kozlowski was sued by Tyco. The lawsuit was successful with the court directing Kozlowski to pay back the $500 million of compensation and benefits he received during his time of infidelity back to Tyco. This was possible because of the New York faithless servant doctrine which requires employees who are not faithful to compensated for all benefits they earned when they were not loyal to the business.
In his time in Tyco, Kozlowski became infamous for his extravagant lifestyle which was often compared with the lavish lifestyle of old Roman Emperors. According to reports, he received corporate pay to pay for his $30,000 residence situated in New York City, which included $6,000 shower curtains in addition to other lavish facilities. Furthermore, he purchased lots of land in Boca Raton, Florida’s private secured community, called the Sanctuary and bought an oceanfront property located on Nantucket.
Kozlowski continued to let Tyco provide a lot of his extravagant personal expenses, such as an $1 million birthday celebration in honor of Karen, his spouse. Karen. The event was held on Sardinia in Italy The party included the private Jimmy Buffett concert and included an Ice sculpture made by Michelangelo’s “David” urinating vodka.
The year 2006 was the time that Kozlowski had a divorce from wife Karen. He later got married Kimberly who is with whom he has a range of companies. Kozlowski is the director of Fortune Society, a nonprofit established by David Rothenberg in 1967 to offer support to previously imprisoned people.