A furor over an elderly juror in the corruption case of two former Tyco International Ltd. executives prompted defense attorneys to renew efforts to win a mistrial on Tuesday while jurors deliberated a ninth day without reaching a verdict.
Lawyers for former Tyco Chairman Dennis Kozlowski and ex-finance chief Mark Swartz argued that anonymous comments in Internet chatrooms about an apparent holdout juror could prevent the jury from reaching a fair verdict in one of the biggest cases of U.S. corporate corruption.
The juror, a 79-year-old retired teacher and attorney, became the center of controversy in the trial of Kozlowski and Swartz, who are accused of looting Tyco of $600 million, after she gave Kozlowski what some media reported as an “OK” sign last week.
She was publicly identified by two news organizations, with the New York Post labeling her “Ms. Trial” in a front-page story.
The juror has since become the subject of scathing attacks on the Internet, defense attorney Charles Stillman argued on Tuesday as he sought a mistrial. The postings referred to her as an “old bitch” and “ex-slimy lawyer.” Other remarks were anti-Semitic.
“It’s staggering to understand the venom, the outrageous statements made,” Stillman said.
The insults could hinder the juror’s ability to deliberate in good faith, the attorney said. Notes from the jury last week indicated a majority was leaning toward guilty verdicts in the 32-count indictment, with the juror in question as the possible holdout.
State Supreme Court Judge Michael Obus considered the latest mistrial motion but gave no ruling. He rejected defense motions on Monday that the intense media exposure was grounds for mistrial.
The ninth day of deliberations concluded with a lengthy read-back of testimony by Swartz about various Tyco bonus and relocation loan programs at Tyco. Prosecutors say Kozlowski and Swartz illegally tapped the programs for tens of millions of dollars.
The panel also re-heard testimony by Swartz about a real estate investment he made that cost Tyco $1.2 million after he forfeited his deposit.
Swartz testified he paid a $1.2 million deposit to buy units at the posh Trump International Hotel and Tower Condominium with plans to rent them to visiting Tyco employees. The deal would have generated him profits.
However, after Kozlowski suggested the arrangement might be a conflict of interest, Swartz said he pulled out of the deal. He lost his deposit, but Tyco repaid him and recorded a $1.2 million company expense, he testified.
Prosecutors accuse Swartz of stealing the money and say he never got proper approval to be reimbursed.
The jury was dismissed after re-hearing the testimony and ordered to resume its work on Wednesday in the nearly six-month-old trial, which is considered a pivotal prosecution in the wake of other corporate scandals, such as those at Enron and WorldCom.
The case has drawn wide public attention as testimony revealed Kozlowski’s lavish spending. Jurors heard he paid $5 million for a diamond ring, $6,000 for a shower curtain and $2 million to fete his wife in Sardinia for her 40th birthday.
Kozlowski, 57, built Tyco into one of the world’s largest diversified manufacturers through a dizzying array of acquisitions that cost more than $60 billion. Swartz, 43, was his top lieutenant and the point man for explaining Tyco’s opaque accounting to Wall Street.
