NEW YORK, April 27 -- Former Tyco International Ltd. chief executive L. Dennis Kozlowski took the witness stand Wednesday and denied that he ever abused company loan programs or received a bonus to which he was not entitled.
Testifying in his own defense at his retrial on larceny charges, Kozlowski said his intent was always to increase business, never to commit a crime.
Still, asked by his lead lawyer why a $25 million bonus from the company did not appear on his 1999 tax return, Kozlowski said he could not explain why.
"I just was not thinking when I signed my tax return that I had a $25 million loan forgiveness," Kozlowski said. "Year in and year out at Tyco, my tax returns for the most part had been correct. I didn't pick up on it."
The $25 million forgiveness of loans from the company had come as part of $62 million in bonuses Kozlowski received at the time. Prosecutors say it should have been reported as income.
Kozlowski, 58, was the first defense witness in the trial. Former chief financial officer Mark H. Swartz, 44, is also a defendant. The two are accused of looting the conglomerate of $600 million.
They are accused of hiding unauthorized pay and bonuses, abusing company loan programs and making $430 million by inflating the value of Tyco stock by lying about the company's finances.
The defendants are being retried in New York state Supreme Court on charges of grand larceny, falsifying business records and violating state business laws. Their first trial ended in a mistrial in April 2004 after a juror received menacing messages during deliberations after her name was published.
