US judge lets grand larceny charge stand
NEW YORK - A state judge refused to throw out a grand larceny charge yesterday against the former top lawyer for Bermuda-based Tyco International Ltd., who is accused of accepting a $12 million bonus in exchange for thwarting a federal investigation. Judge Michael Obus of state Supreme Court in Manhattan also declined Mark Belnick's request to dismiss six other counts that accuse him of falsifying business records.
Belnick, former CEO Dennis Kozlowski and former chief financial officer Mark Swartz have all pleaded innocent to charges they looted the conglomerate of hundreds of millions of dollars.
Prosecutors say Belnick accepted the $12 million in cash and stock in 2000 for his role in persuading the Securities and Exchange Commission to end an earlier investigation into accounting problems at Tyco.
Lawyers for Belnick have characterised the bonus as simply a reward for good work. Belnick, who was chief counsel at Tyco, was indicted in September 2002 on charges he falsified records to cover up $14.5 million in improper loans from Tyco. Prosecutors added the grand larceny charge in February.