Ex-Tyco CFO to face tax evasion charges
Mark Schwartz, the former chief financial officer of Tyco International, has been indicted by a US court for allegedly evading $5m (£3.14m) of income tax.
According to the indictment, Schwartz allegedly avoided almost $5m in federal taxes. The prosecution said he failed to report a $12.5m bonus he received from Tyco in his 1999 tax return.
The CFO received the bonus when Tyco forgave him a $12.5m loan that he owed the company. The loans were charged to the Key Employee Loan Programme, but recently, Tyco asked Schwartz to return the loan, according to the New York Times.
Schwartz’s lawyer said: ‘He will not plead guilty because he does not owe any tax to the government. He will be vindicated.’
The new charges are in addition to other accusations of an alleged $600m fraud against Schwartz and against former Tyco chief executive Dennis Kozlowski.