Ex-Tyco HR Chief Testifies in Kozlowski Trial

Tyco International Ltd.'s (TYC) ex-head of human resources testified Monday that she was never asked to hide details of compensation paid to top executives Dennis Kozlowski (search) and Mark Swartz (search) from the company's board of directors.

In her third day on the stand, Patricia Prue, senior vice president of human resources at the Bermuda-based conglomerate from 1998 to 2002, said Kozlowski, Tyco's former chief executive, and Swartz, its ex-chief financial officer, never instructed her to keep details of million of dollars in bonuses paid to them from the company's directors.

Click here to read the indictment against Kozlowski and Swartz

However, Prue previously testified that she never brought the bonuses to the board's attention and never questioned a key director about the now-disputed sums.

"Mr. Kozlowski never told you don't show these letters to the board?" asked Austin V. Campriello, one of Kozlowski's lawyers, in reference to a letter sent by Tyco's human resources department to Kozlowski, Swartz and other employees who received a bonus related to the company's sale of its ADT Automotive unit.

"No," Prue said.

Prosecutors claim the ADT Automotive (search) bonus and other compensation to Kozlowski and Swartz was unauthorized by Tyco's board and was thus stolen.

Kozlowski, 58, and Swartz, 44, are on trial in New York State Supreme Court, facing charges of grand larceny, securities fraud and other crimes in connection with giant bonuses and other compensation they received while working as Tyco's top executives. They each face up to 25 years in prison on the most serious charge of grand larceny. They have denied wrongdoing.

Their first trial ended in a mistrial in April after a juror reported receiving a phone call and letter about the case during deliberations. The juror's name had been disclosed by several news organizations after she appeared to give an "OK" signal to the defense.

Prue, a key witness for the government, was expected to continue her testimony later Monday.

Tyco, which has its headquarters in Bermuda but now operates out of West Windsor, N.J., makes a wide variety of products, including fire-safety gear and medical equipment.