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Corruption case against Tyco execs declared a mistrial as juror gets threats

The corruption trial of two former Tyco International Ltd executives ended in a mistrial on Friday after an apparent holdout juror received a threatening letter, leaving the judge with "no choice" but to halt the 12-day-old deliberations.

The juror, who triggered a courtroom tempest last week when she appeared to give defendant Dennis Kozlowski an approving hand signal, had received the letter in the previous 24 hours, courtroom sources said.

State Supreme Court Judge Michael Obus, visibly upset and with a quaking voice, said it was a "shame" the judicial process could not be protected.

"I have no choice but to grant a mistrial," Obus said, citing "outside pressure" on one juror.

The mistrial ended a six-month-long trial for Kozlowski, Tyco's former chairman, and Mark Swartz, its ex-finance chief, who were accused of looting the conglomerate of US$600 million in one of the biggest corporate corruption cases in US history.

Manhattan District Attorney Robert Morgenthau said his office would seek a retrial.

Defense attorneys sought a mistrial all week, arguing that media exposure of the juror, 79-year-old Ruth Jordan, prevented the panel from reaching a fair verdict. The retired teacher and lawyer sparked the controversy last week when she made what was widely reported as an "OK" hand gesture toward the defense.

That followed jury complaints to the judge about a "poisonous" atmosphere in the deliberation room. Jury notes indicated most panelists were leaning toward guilty verdicts.

Late on Friday, Jordan issued a statement declining all media requests for interviews.

"My greatest interest is, and always has been, to do the right thing in my role as a juror in this case," Jordan said in the statement. "I do not know that I could express additional views at this time.

After Jordan's identity was revealed by the media, she became the topic of scathing Internet chatter, and one source described the letter she received as threatening.

Swartz's attorney Charles Stillman said: "I've been doing this 40 years. I tell you, if I piled up all the experiences top to bottom, I ain't seen nothing like this yet."

Juror Peter McEntegart told reporters the panel had been on the verge of a verdict.

"We virtually had a verdict yesterday afternoon," he said, but the panel opted to return on Friday for what they thought would be another few minutes of deliberations.

But while the defense now has the advantage of having heard the evidence, Boston lawyer Michael Connolly noted the 11-to-1 jury split could push the defense toward a plea deal.

"The defense has to be realistic," he said. "Next time they may not get one holdout juror."

Kozlowski and Swartz built Tyco into one of the world's largest conglomerates by buying hundreds of companies, and the case was considered a pivotal prosecution in the wake of other US corporate scandals, such as those at Enron and WorldCom.

Prosecutors claimed Kozlowski and Swartz used Tyco as their piggy bank, enjoying unauthorized bonuses, forgiven loans and other payments, but defense attorneys said all the money was paid with company approval.

The case, thought to cost the state as much as US$6 million and the defendants just as much, captured public attention when testimony revealed Kozlowski's lavish spending.

Jurors heard how he paid US$5 million for a diamond ring, US$6,000 for a shower curtain and US$2 million to fete his wife in Sardinia, Italy, for her 40th birthday.

The party featured a now-infamous ice sculpture of Michelangelo's David with vodka flowing from its penis.

Kozlowski and Swartz still face lawsuits filed by Tyco and Tyco shareholders, and Kozlowski faces tax-evasion charges.
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