Litigation Release No. 19678 / May 1, 2006

SEC v. L. Dennis Kozlowski, Mark H. Swartz, and Mark A. Belnick, 02 Civ. 7312 (RWS) (S.D.N.Y. filed Sept. 12, 2002)

SEC Settles Litigation with Former Chief Corporate Counsel of Tyco International Ltd.

The U.S. Securities and Exchange Commission (Commission) today announced that, on May 1, 2006, the Commission filed a Consent and proposed settled Final Judgment against Defendant Mark A. Belnick, former Chief Corporate Counsel of Tyco International Ltd. (Tyco), in Securities and Exchange Commission v. L. Dennis Kozlowski, Mark H. Swartz, and Mark A. Belnick., 02 Civ. 7312 (RWS) (S.D.N.Y. filed Sept. 12, 2002).

The Commission's Complaint in this case alleged that between 1998 and early 2002, Belnick received approximately $14 million in loans from Tyco. Tyco did not disclose these loans, as required by the federal securities laws, in its annual reports and proxy statements filed with the Commission. The proposed settlement is based on the Complaint's allegations concerning Belnick's conduct which aided and abetted Tyco's violations of the federal securities laws when it failed to disclose those loans.

Belnick, without admitting or denying the allegations in the Commission's Complaint, consented to the entry of a Final Judgment which will permanently enjoin him from aiding or abetting violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and from aiding and abetting violations of Sections 13(a) and 14(a) of the Exchange Act and Rules 12b-20, 13a-1, and 14a-9 thereunder. The proposed Final Judgment orders Belnick to pay a civil money penalty in the amount of $100,000, pursuant to Section 21(d)(3) of the Exchange Act. Under the terms of the proposed Final Judgment, Belnick will be prohibited for a period of five years from serving as an officer or director of a public company, pursuant to Section 21(d)(2) of the Exchange Act. Belnick has previously settled Tyco's claims with respect to the loans he received from the company.

See also Litigation Release No. 17722 (September 12, 2002).