ALBANY, N.Y. (AP) — A court in New York rejected a request Tuesday for a new parole hearing by former Tyco CEO Dennis Kozlowski, who became the face of corporate greed after his 2005 conviction in a $100 million fraud scheme.
Kozlowski was denied parole in April 2012 and challenged the decision. A panel of mid-level Appellate Division judges, in a spare, two-paragraph ruling, said the state parole board acted properly.
Kozlowski, now 66, and former Tyco International Ltd. chief financial officer Mark Swartz, 52, were convicted of fraud and larceny and sentenced to 8 1/3 to 25 years in prison. Both are being held at the minimum security Lincoln Correctional Facility in Harlem and have parole hearings scheduled in September.
The two executives were found guilty of helping themselves to piles of unauthorized pay after a trial detailed lavish spending — including Kozlowski's $6,000 gold-threaded shower curtain, his $15,000 umbrella stand shaped like a small terrier and a $2 million birthday party he threw for his wife on the Mediterranean island of Sardinia.
Kozlowski's attorney, Alan Lewis, said he will seek an appeal to the state's highest court, the Court of Appeals.
"We respectfully, but strongly, disagree with the appellate division's decision and instead think that the lower court was entirely correct about the flaws in the Parole Board's decision," he said in a prepared statement.
During his 2012 parole hearing, Kozlowski admitted the fraud, a departure from the defiant stance he took at trial.
"I stole money from Tyco, and I stole a lot of money, and ... I'm very sorry I did that," Kozlowski said.
The parole board called his crime a "glaring violation" of shareholders' trust. In denying parole, the board said granting his release would undermine respect for the law, a finding the appellate court noted in its Tuesday ruling.