tyco 案例分析.docx

Case Study: TycoTyco BackgroundTyco International has operations in over 100 countries and claims to be the worlds largest maker and servicer of electrical and electronic components; the largest designer and maker of undersea telecommunications systems; the larger maker of fire protection systems and electronic security services; the largest maker of specialty valves; and a major player in the disposable medical products, plastics, and adhesives markets. Since 1986, Tyco has claimed over 40 major acquisitions as well as many minor acquisitions.How the Fraud HappenedAccording to the Tyco Fraud Information Center, an internal investigation concluded that there were accounting errors, but that there was no systematic fraud problem at Tyco. So, what did happen? Tycos former CEO Dennis Koslowski, former CFO Mark Swartz, and former General Counsel Mark Belnick were accused of giving themselves interest-free or very low interest loans (sometimes disguised as bonuses) that were never approved by the Tyco board or repaid. Some of these loans were part of a Key Employee Loan program the company offered. They were also accused of selling their company stock without telling investors, which is a requirement under SEC rules. Koslowski, Swartz, and Belnick stole $600 million dollars from Tyco International through their unapproved bonuses, loans, and extravagant company spending. Rumors of a $6,000 shower curtain, $2,000 trash can, and a $2 million dollar birthday party for Koslowskis wife in Italy are just a few examples of the misuse of company funds. As many as 40 Tyco executives took loans that were later forgiven as part of Tycos loan-forgiveness program, although it was said that many did not know they were doing anything wrong. Hush money was also paid to those the company feared would rat out Kozlowski.Essentially, they concealed their illegal actions by keeping them out of the accounting books and away from the eyes of shareholders and board members.How it Was Discovered