NEW YORK Prosecutors say ex-Tyco executives spent stolen money on gifts, parties

NEW YORK (AP) -- The two Tyco International executives accused of looting the company of hundreds of millions of dollars bought yachts and lavish houses, paid for parties and jewelry, and gave money to their girlfriends, prosecutors said.
They spent like lottery winners, but they "didn't win the jackpot; they stole it," Assistant District Attorney Kenneth Chalifoux said Tuesday in opening statements at the trial of L. Dennis Kozlowski, the former Tyco CEO, and Mark Swartz, the conglomerate's ex-CFO.
Trial for the men, accused of stealing $600 million, was to continue today. Defense lawyers contended that what prosecutors call a massive corporate larceny was actually appropriate reward for building Tyco into one of the world's largest and most successful companies.
Stephen Kaufman, Kozlowski's attorney, explained that the company's compensation committee rewarded senior executives for meeting or exceeding corporate goals each year. And the committee's pay and bonus recommendations would be reviewed and approved by an outside auditor, he said.
"There is no second set of books," Kaufman said. "There is no person who's going to come in here and speak in hush-hush tones about secret payments. Criminals act in criminal ways. Dennis Kozlowski did nothing with the intention of violating laws."
Charles Stillman, Swartz' lawyer, said to the jury, "How could Mark have been trying to steal when the company's external auditor was aware of everything?"