Meanwhile, in another corporate scandal

In case you’re bored with Enron’s shenanigans, there’s always Tyco, where former CEO Dennis Kozlowski sure knew how to throw a party.

Jurors saw a videotape Tuesday of dancing women, half-naked male models and “Margaritaville” singer Jimmy Buffett at a $2 million party that L. Dennis Kozlowski, former CEO of Tyco International, threw for his wife’s birthday on a Mediterranean island.

Prosecutors maintained the party, more than half of which was paid for with company money, was a “stark example” of how Kozlowski and former chief financial officer Mark Swartz looted hundreds of millions from Tyco for their personal benefit.

“It’s going to be a fun week,” the tape shows Kozlowski telling about 75 guests arriving to celebrate Karen Mayo’s 40th birthday on the Italian island of Sardinia on June 11, 2001. “Eating, drinking, whatever. All the things we’re best known for.”

The tape shows five young women in scanty, diaphanous frocks cavorting around a swimming pool, half-naked male models posing in snapshots with female guests and a performance from a pop star.

It goes on from there. Be sure to check out the photos here and here for the full effect. The pop star in question, by the way, is Jimmy Buffett, flown in at a cost of 250 grand.

It’s worth keeping in mind what Kozlowski and his minion Mark Swartz are on trial for:

Prosecutors say the two stole $170 million from Tyco by taking and hiding unauthorized pay and bonuses, raiding company loan programs and forgiving loans to themselves. They say the defendants made another $430 million on their Tyco stock by lying about the conglomerate’s financial condition from 1995 into 2002.

Defense lawyers say Kozlowski and Swartz earned all the compensation they got from Tyco and all the appropriate overseers knew about their compensation and loans.

A total of $600 million is in question here. Somehow, professional athletes don’t sound quite so overpaid when compared to that, no? In case you think they really could have “earned” all that money, take a look at this. Do you think shareholders would have put up with any other expense tripling over a five year period with no abatement in sight and no plan to do anything about it?

UPDATE: Damn. As Jim D notes in the comments, Kozlowski outspent P Diddy by a 2-1 margin. Of course, it was only P Diddy’s 33rd birthday, while Mrs. Kozlowski was celebrating the big 4-0. Pretty impressive, though, no matter how you slice it.

Related Posts:

  • No Related Posts
This entry was posted in Scandalized!. Bookmark the permalink.

4 Responses to Meanwhile, in another corporate scandal

  1. William Hughes says:

    I enjoyed the claim made by the defense that since there were two business meetings that apparently took place during this bacchanal, this should be considered a business retreat.

    I’d love to see what Kozlowski would do at a week long seminar. 😉

  2. elgato says:

    I’m thinking that this is advertising that Jimmy Buffett doesn’t need. Sounds like it was a hell of a party, though.

  3. Jim D says:

    Dang, sounds like one of those crunk parties you’d see in a rap/hip-hop videos.

    Seriously. P. Diddy’s last birthday party only cost $1 million (

    I guess I should grow up. Instead of aspiring to be a gangsta’, I should join corporate America. They throw better parties.

  4. Chris Quinones says:

    $6,000 shower curtains. ‘Nuff said. (My whole damn bathroom probably cost less than six grand!)

Comments are closed.