This is the blog for the grade 12 accounting course at William Lyon Mackenzie.

If you want to reach Ms. Cuttle, you can send an email to msccuttle at gmail dot com.

Advertisements

One Response to “About”

  1. Chris A. Says:

    Tyco international is a diversified manufacturing company. It mostly focused on fire protection, security solutions, and flow control. In 2001, company had revenue of $38 billion and about 240000 employees. Because of the one of the chairman’s, Dennis Kozlowski’s frauds, the company stood 28 billion in depts. In the frauds were involved also many employees of the company and a lot of shareholders lost millions of dollars.
    He bought paintings worth $13m. And he shipped the empty boxes to one of the Tyco head quarters to avoid paying taxes, which were about 8%. When he took the loan, which was $19m, he did not pay it back and company was still paying the taxes. Nobody was told about that so even the shareholders and the company was staying on its market value until the truth was revealed. In 2001, the shares were more than $60 and they came down to about $15. Dennis Kozlowski and chief financial officer Mark Swartz stole in total $170 million and got about $430 million from deceitful stock sales.
    • 1960 the laboratories began operate experimenting government work
    • 1964 The company expended
    • 1975 Dennis Kozlowski joined the company as assistant controller. Tyco began to pay more attention on packaging, fire protection and electronics
    • 1992 Kozlowski became CEO
    • 1993 Kozlowski became the chair of the board and expended the company into health care
    • 1999 SEC began to analyze Tyco’s accounting practices
    • 2002 Dennis Kozlowski was found guilty for evading about 1 mill tax payments
    • 2002 It came to light that Kozlowski was forgiven the $19 million loans from the Tyco and company paid the income taxes on the loan. SEC began act towards the issue against Kozlowski and two other top executives who did not reveal Kazlowski’s forgiven loan
    • 2005 Kozlowski and Mark Swarts, Tyco’s chief financial officer were found guilty for twenty two numbers of frauds and went to prison for from 8 to 25 years.

    There were accounting errors but not systematic fraud problem was found. The descendant of Kozlowski replaced 220 of 250 Tyco’s top managers. Because Kozlowski was selling the stocks without telling investors they lost about $90 million. At that time such things were done more easily because nobody was watching, but now there are a lot of lowers, accountants and board of directors so it is becoming quit impossible.

    http://prezi.com/ny0iirzvvnqc/edit/#1_4053307

    Lee Ann Obringer, “How Cooking the Books Works”, How Stuff Works, April 5 2011, http://money.howstuffworks.com/cooking-books11.htm
    Caryn E. Neumann, “Tyco International scandal”, American-Business, April 5 2011, http://american-business.org/2781-tyco-international-scandal.html
    “Tyco International In Shadow Of Scandal-13 September, 2002-News”, pravda, April 5 2011, http://english.pravda.ru/news/russia/economics/13-09-2002/17922-0/
    “The Rise and Fall of Dennis Kozlowski”, Bloomberg Businessweek, April 5 2011, http://www.businessweek.com/magazine/content/02_51/b3813001.htm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s