Former Tyco executive takes witness stand after co-defendant re

NEW YORK -- Tyco International Ltd.'s former chief financial officer Mark Swartz testified Tuesday that he didn't do anything he believed was illegal during the 11 years he worked at the company.

Swartz took the stand after the defense team for his co-defendant, former Tyco chief executive L. Dennis Kozlowski, rested its case without calling any witnesses.

Defense attorney Charles Stillman inquired how long Swartz had worked at the company, then asked: "During the time you were at Tyco, did you ever take any action that you believed was wrong or illegal?"

"Absolutely not," Swartz replied.

The defendants are accused of stealing $600 million from the company. Kozlowski, 57, and Swartz, 43, are in the fifth month of a trial on state charges including grand larceny and falsifying business records.

Prosecutors say the two stole $170 million by hiding unauthorized pay and secretly forgiven loans in major Tyco transactions. They allegedly made an additional $430 million on Tyco shares by lying about the company's financial condition from 1995 into 2002.

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

Justice Michael Obus rejected defense motions last week to declare a mistrial or dismiss all the charges.

The judge said prosecutors presented enough evidence that the defendants intentionally looted Tyco and tried to cover up their crimes to let the jury deliberate on the charges.

However, the judge said he would rule later, perhaps just before the jury begins deliberations, on dismissing the top count, "enterprise corruption." If convicted only on that charge, which is usually brought in organized crime cases, the defendants each would face up to 25 years in prison.

The judge said he would also reserve decision on three counts in which Kozlowski is accused of stealing three pieces of art worth a total of $14.7 million from the company.

Tyco, which has about 270,000 employees and $36 billion in annual revenue, makes electronics and medical supplies and owns the ADT home security business.