Tyco International Ltd.'s former top-ranking plastics official, Stephen McDonough, is one of many Tyco executives who received an improper relocation loan, according to the company.
McDonough and a crowd of other managers are named in an 8-K report Pembroke-based Tyco filed Sept. 17 with the Securities and Exchange Commission. The report details alleged illegal and unethical conduct by former Chief Executive Officer Dennis Kozlowski and other executives.
Tyco said it terminated McDonough's employment about a month ago. He headed Tyco Plastics and Adhesives Group, the third-largest film and sheet extruder in North America, and A&E Products Group LP, a major molder of plastic clothes hangers.
McDonough's alleged impropriety is buried in a 242-page SEC filing that focuses on the alleged excesses of Kozlowski and a few other top managers. Tyco said it is filing a civil lawsuit against Kozlowski to recover the funds he allegedly misappropriated.
Company officials were unavailable to disclose who, if anyone, has been named to replace McDonough and other plastics officials rumored to have left the company. Tyco tried to sell its plastics operations earlier this year but abandoned the plan when it found no takers for its expected price of $3 billion or more. The company had been expanding its film and hangers businesses aggressively through acquisitions.
Ed Breen, Tyco's new chief executive officer, aims to restore the firm's credibility through an in-depth review of Tyco's accounting beginning with fiscal 1999. Forensic accounting firm Urbach Kahn & Werlin Advisors will help examine Tyco's accounting practices.