Bitter friction in the jury room threatens Tyco verdict
Notes from jurors describe the deliberations as "poisonous." The judge dismisses a defense motion to declare a mistrial.
By Associated Press
Published March 26, 2004
NEW YORK - Jurors in the Tyco International corruption trial told the judge Thursday that deliberations have "turned poisonous" and threatened the outcome of the five-month trial. He refused to call a mistrial and gave them the night to cool off.
One or more jurors "does not have an open mind," they said in one of three notes sent to Supreme Court Justice Michael Obus. "The disagreement is so intense that it has resulted in very bad acrimony. Perhaps this jury cannot continue. What shall we do?"
"The atmosphere in the jury room has turned poisonous," the jurors said.
The messages prompted a motion for a mistrial by the defense. "We believe our right to a fair trial no longer exists," said defense attorney Austin Campriello, representing former Tyco chief executive L. Dennis Kozlowski.
Obus denied the motion, then told the jury to go home, relax and return Friday, when "we will see if we can continue."
In dismissing the jurors for the day, the judge said he was concerned about some of the content of the notes. "It is important as a personal matter that you all continue to respect each other's opinion," he said.
The notes portrayed a jury in danger of imploding, divided by insults and hard feelings. One member of the jury, a note said, "had stopped deliberating in good faith." Jurors were also swapping "incendiary accusations," the note continued.
Jurors sat through five months of testimony before deliberations in the case against Kozlowski and former Tyco chief financial officer Mark Swartz even began.
The notes came seemingly out of the blue. Earlier, the jurors had asked the court to "indulge us with more time" before they returned to the courtroom to hear a readback of testimony.
"With your kind permission, we would like to let you know when we are ready - hopefully today," the note concluded.
Swartz, 43, and Kozlowski, 57, are charged with 32 counts of grand larceny, falsifying business records and violating state business laws. They each could face up to 30 years in prison if convicted. The two allegedly took unauthorized bonuses and abused company loan programs and used the money to finance lavish lifestyles.
The defense argued that the two men earned every dime and that the board of directors and the company's auditors knew about the compensation and never objected. Kozlowski once made more than $100-million in one year.
Swartz testified that he did not do anything he believed was illegal.
He said he and Kozlowski received bonuses and had their loans forgiven at many informal company board meetings at which no minutes were recorded. Kozlowski did not testify.
Prosecutors alleged that some of the looted money was used to purchase and decorate an $18-million Fifth Avenue apartment used by Kozlowski.
The opulent residence was home to amenities that included a $15,000 umbrella stand and a $6,000 shower curtain.
Kozlowski also allegedly used the money to finance an extravagant 40th birthday party for his wife, held on a Mediterranean island for 75 revelers. Swartz's take included an $8-million loan used to finance homes in Florida, New York City and New Hampshire, prosecutors alleged.
Prosecutors also said Kozlowski and Swartz netted an additional $430-million by pumping up Tyco stock prices and selling their shares at market rates from 1995 through 2002.
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. Its operations headquarters are in West Windsor, N.J., but the company is based in Bermuda.
Shareholders meeting Thursday in Connecticut overwhelmingly rejected proposals to move the scandal-tainted conglomerate's incorporation back to the United States and to strictly limit executive compensation - both moves the company had opposed.
Shares of Tyco International closed at $27.88 on the New York Stock Exchange on Thursday, up $1.03 from the previous day's closing price.
