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Tyco executives await hearing on source of their bail

A judge allowed former Tyco International Ltd chief executive L. Dennis Kozlowski and former chief financial officer Mark Swartz to remain free on bail Thursday, pending a hearing on whether assets pledged for the bonds came from alleged multimillion dollar fraud.

State Supreme Court Justice Michael Obus set a Sept. 27 hearing to discuss the source of the money, which prosecutors contend was stolen from the company and should not be used for their bail.

Assistant District Attorney John Moscow also said, "We expect to bring additional charges against additional defendants." He declined to elaborate.

Meanwhile, a person with knowledge of the case said on Thursday that Tyco is selling the posh Fifth Avenue apartment and its antiques and furnishings that Kozlowski allegedly bought with Tyco money.

The auction house Sotheby's has been in the US$16.8 million home, but it has not yet been appraised, the person said.

Kozlowski and Swartz were charged last week with enterprise corruption and grand larceny for allegedly stealing some US$600 million from Tyco. They face up to 25 years in prison on each of those charges if convicted.

Lawyers for Kozlowski and Swartz had complained earlier this week that the men's personal assets had been frozen, and money offered by relatives and others for the bail had been rejected by prosecutors as possible proceeds of the crimes with which they are charged.
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