Charges stand against ex-Tyco lawyer

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A New York state judge refused to throw out a grand larceny charge yesterday against the former top lawyer for Tyco International Ltd., who is accused of accepting a $12 million bonus in exchange for thwarting a federal investigation.Judge Michael Obus of the New York Supreme Court in Manhattan also declined Mark Belnick’s request to dismiss six other counts that accuse him of falsifying business records.Belnick, former CEO Dennis Kozlowski and former chief financial officer Mark Swartz have all pleaded innocent to charges they looted the conglomerate of hundreds of millions of dollars.Prosecutors say Belnick accepted the $12 million in cash and stock in 2000 for his role in persuading the Securities and Exchange Commission to end an earlier investigation into accounting problems at Tyco.Lawyers for Belnick have characterized the bonus as simply a reward for good work.Belnick, who was chief counsel at Tyco, was indicted in September 2002 on charges he falsified records to cover up $14.5 million in improper loans from Tyco. Prosecutors added the grand larceny charge in February.The state judge said he was still reviewing whether to dismiss another element of the case against Belnick — a charge that he had knowledge of the wrongdoing allegedly carried out by Kozlowski and Swartz.Obus asked prosecutors to provide him grand jury evidence that backs up that claim. He said he would rule on the matter by Sept. 22.Kozlowski and Swartz are scheduled to go on trial Sept. 29. No trial date has been set for Belnick.