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Tyco executives 'thought they were above the law,' prosecutor says in closing arguments

NEW YORK (AP) - A $6,000 shower curtain was just one of many extravagances former Tyco International chief L. Dennis Kozlowski lavished upon himself while looting the company, a prosecutor said Tuesday in closing arguments.

The now-infamous shower curtain, ensconced in a maid's bathroom in Kozlowski's $18 million Manhattan apartment, was shown to jurors during Kozlowski's trial as evidence of his opulent lifestyle. Kozlowski and former chief financial officer Mark H. Swartz are accused of looting the company of $600 million.

Donnelly said Kozlowski was interested in showing off art to high society figures to show "he's just like them."

"There's nothing wrong with" extravagance, she said. "But you have to pay for it. Don't make someone else pay for it for you."

Kozlowski and Swartz "thought they were above the law," she said. "These defendants stole huge amounts of money, with two fists."

Kozlowski, 57, and Swartz, 43, are accused of stealing $170 million by taking unauthorized bonuses and abusing company loan programs, and netting an additional $430 million by manipulating Tyco stock prices.

In addition to a video tour of Kozlowski's apartment, prosecutors showed videotape of a $2 million birthday party on the island of Sardinia for Kozlowski's wife. On Monday, Kozlowski's lawyer, Stephen Kaufman, said footage from the party -- showing toga-clad servers and a performance by Jimmy Buffett -- was meant to prejudice the jury.

Kaufman said Tyco paid Kozlowski huge sums of money because he helped the company earn billions of dollars, and the board of directors and auditors were aware of every penny he received.

Swartz's lawyer, Charles Stillman, was allowed a few minutes Tuesday to recap the six-hour summation he presented last week, in which he said there was "not one thimbleful of proof" against Swartz. He got the chance to refresh jurors' memories because after he gave his closing, the trial shut down for several days when another lawyer fell ill.

Kozlowski and Swartz are charged with a total of 32 counts of grand larceny, falsifying business records and violating state business laws. The grand larceny charge -- which alleges theft of more than $1 million -- is punishable by up to 25 years in prison.

Kozlowski's defense team rested last month without calling him to the stand. Swartz did testify, saying that he didn't do anything he believed was illegal.

Tyco, which has about 270,000 employees and $36 billion in annual revenue, makes electronics and medical supplies and owns the ADT home security business.

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