Leflaw.com

After scandal rocked Tyco and several of its executives, an internal investigation revealed that Tyco International had over-reported its 2002 results by nearly $400 million. Its financial reports for the past five years were inflated as well. According to Tyco, while no major fraud was uncovered in the internal investigation, creative accounting practices were.

Tyco placed the blame for the negative findings squarely on the shoulders of its former management. Three of Tyco International’s top executives have been indicted by the SEC for fraudulent activities. The three executives are accused of stealing $600 million through loans, bonuses, and illegal stock sales. Regulators said the three executive used Tyco as "their personal piggy bank."

The amount of money they are accused of illegally acquiring is "staggering," said Steven Cutler, SEC chief of enforcement. The former CEO took advantage of investors and board members for seven years.