Dennis Kozlowski Net Worth 2024

What is Dennis Kozlowski’s Net Worth?

Dennis Kozlowski is an American businessman and convicted felony who had a peak net worth of $600 million. Dennis Kozlowski served because the CEO of Tyco International for twenty years. While serving as CEO of Tyco, Dennis gained appreciable notoriety for his lavish events and way of life that had been funded by Tyco. In 2002, he resigned amid a large scandal involving monetary fraud. Kozlowski obtained a conviction in 2005 and served round 9 years in jail earlier than his conditional launch in early 2014.

He was finally tried and convicted of receiving unusually excessive bonuses and paychecks totaling greater than $80 million. He was additionally convicted of illegally receiving $14 million value of artwork and fraudulently authorizing a $20 million cost to a Tyco funding banker. He was sentenced to serve 8 to 25 years in jail at Mid-State Correctional Facility.

Dennis Kozlowski’s most well-known extravagances included a $30 million NYC condo that was paid for by Tyco. This condo famously featured a $6,000 bathe curtain and a $15,000 canine umbrella stand.

Tyco additionally spent $1 million on a lavish fortieth celebration for Dennis’ former spouse on the Italian island of Sardinia. In complete, Dennis obtained greater than $150 million in money and bonuses from Tyco and earned a further $430 million by artificially inflating the corporate’s inventory worth. In addition to jail time, Kozlowski was ordered to pay $134 million again to Tyco and a $70 million nice to the US authorities.

Early Life and Education

Dennis Kozlowski was born as Leo Dennis Kozlowski on November 16, 1946 in Newark, New Jersey to Leo Sr., who labored for the Public Service Transport, and Agnes, who labored for the Newark Police Department. Both of his dad and mom had been second-generation Polish-Americans. As a younger grownup, Kozlowski went to Seton Hall University in South Orange, New Jersey.

Tyco International

In 1975, Kozlowski joined the safety programs firm Tyco International; later, in 1992, he turned its CEO. In that place, he led the corporate via a serious growth fueled by a collection of mergers and acquisitions. Throughout the 90s, Tyco acquired such corporations as Preferred Pipe; Thorn Security; Sempell; Raychem; Wormald International; Tectron Tube; ElectroStar; Submarine Systems; and Professional Medical Products, amongst many others. In 1997, Tyco merged by way of reverse takeover with the safety companies firm ADT, in consequence shifting its incorporation to the tax haven of Bermuda.

Kozlowski and Tyco continued to aggressively purchase corporations into the brand new millennium, with notable purchases together with General Surgical Innovations, AFC Cable, Siemens Electromechanical Components, and Mallinckrodt. However, regardless of its myriad acquisitions, Tyco incurred main losses as properly, together with $3 billion misplaced for the fiscal 12 months 2002.

Tyco Scandal

In 2002, Kozlowski resigned as Tyco CEO amid a large monetary fraud scandal. The firm was alleged to have violated the Securities Exchange Act by failing to reveal essential monetary data and reporting inflated earnings. Kozlowski himself was tried twice; throughout his trials, he denied ever committing against the law as CEO. Despite his claims, each he and former Tyco CFO Mark Swartz had been convicted in 2005 on a number of counts of securities fraud, grand larceny, and falsifying enterprise information. Kozlowski’s particular crimes included receiving $81 million in apparently unauthorized bonuses and paying former Tyco director Frank Walsh a $20 million funding banking charge.

Prison Sentence

For his crimes, Kozlowski was sentenced by the Manhattan Supreme Court to eight-to-25 years in jail. Moreover, he and Swartz had been ordered to pay a complete sum of $134 million in restitution, with Kozlowski issued a further $70 million nice and Swartz a $35 million nice. Kozlowski was then despatched to the Mid-State Correctional Facility in Marcy, New York, the place he served over six years of his sentence. In the spring of 2012, he was denied parole. Kozlowski was subsequently transferred to the Lincoln Correctional Facility in New York City; he remained there till his conditional launch in early 2014.

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Faithless Servant Doctrine

In one other consequence of his crimes, Kozlowski was sued by Tyco. The swimsuit was profitable, with the court docket ordering Kozlowski to forfeit the $500 million in compensation and advantages he earned throughout his interval of disloyalty again to the corporate. This was made potential below New York’s faithless servant doctrine, which makes untrue workers pay again all compensation they obtained after they had been disloyal to the corporate.

Personal Life

During his years at Tyco, Kozlowski turned notorious for his decadent way of life, which was typically in comparison with the debauchery of historic Roman emperors. Reportedly, he had his firm pay for his $30 million condo in New York City, which boasted $6,000 bathe curtains, amongst different exorbitant facilities. Additionally, he purchased a number of acres in Boca Raton, Florida’s personal gated group referred to as the Sanctuary, and bought an oceanfront property on Nantucket. Kozlowski continued to have Tyco subsidize a lot of his private luxuries, together with a $1 million celebration for his spouse Karen. Held in Sardinia in Italy, the occasion featured a personal Jimmy Buffett live performance and included an ice sculpture of Michelangelo’s “David” urinating vodka.

In 2006, Kozlowski acquired divorced from his spouse Karen. He later married Kimberly, with whom he runs numerous companies. Kozlowski serves because the chairman of the board of the Fortune Society, a nonprofit based by David Rothenberg in 1967 to supply assist companies to previously incarcerated people.