Tyco scandal - Dinulos Lyzza May A BSA-4 Scandal(2002 When...

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Dinulos, Lyzza May A. BSA-4 Scandal (2002) When was the alleged fraud discovered? Tyco’s financial accounting first came under review in January 2002 after a tip suggested that a less-than-legal transaction might be taking place. In June of the same year, Kozlowski resigned just before he was accused of tax evasion on some expensive art purchases, allegedly made with company funds. On September 12, 2002, the SEC formally charged Kozlowski, Schwartz, and Belnick of civil fraud. What types of fraud are the men accused of committing? The SEC and Tyco International have indicted the former executives on charges of civil fraud and theft. They are accused of giving themselves interest-free or low interest loans for personal purchases of property, jewelry, and other frivolities. According to the SEC, these loans were never approved or repaid. Kozlowski and Schwartz are also accused of issuing bonuses to themselves and other

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