Lavish party footage is highlight of Tyco trial

Jurors were shown a video of Mrs Kozlowski's birthday in Italy, including a cake in the shape of a naked woman, writes Christopher Bowe. The courtroom for the trial of former Tyco executives Dennis Kozlowski and Mark Swartz typically draws a good crowd.
But this week the third row reserved for family and friends of the defendants was conspicuously empty; it is the usual place for Mr Kozlowski's wife, Karen.
Mrs Kozlowski was not present for one of the highlights of the trial, the screening of a video tape of her extravagant 40th birthday party in Sardinia, Italy, for which Tyco paid half of the $2m cost. Jurors saw a view of the birthday cake in the shape of a naked woman with sparklers on her breasts and lots of bad dancing at the poolside Romantheme party.
It was the signature moment so far in the trial of Tyco's former chief executive and chief financial officer. But not one upon which the case is likely to hinge. The plot and courtroom atmosphere thickened with key testimony as prosecutors moved into the heart of their case, alleging grand larceny, conspiracy, securities fraud and enterprise corruption.
Patricia Prue, a former human resources director at the energy group, said the board of directors compensation committee did not approve bonuses of $96m in 2000 as well as other large special packages. Ms Prue was the liaison between the men and the compensation committee, particularly its chairman, Phil Hampton, who died in 2001.
Mr Kozlowski, the former CEO, and Mr Swartz have been charged with stealing $600m from Tyco by unapproved compensation, perks and improper share deals, and prosecutors claim their lavish lifestyle was the motivation driving their greed. Both men pleaded not guilty. Defence attorneys say they accounted for all their actions.
Prosecutors aimed to show jurors two key things this week. The now infamous party was supposed to show that Mr Kozlowski used the corporation's time and money as his own. Testimony later in the week was supposed to show how lucrative bonuses were kept from the eyes of the board of directors and given to those close to Mr Kozlowski and Mr Swartz.
The party video was part of the evidence from Barbara Jacques, a former events director at Tyco who planned the week-long Italian sojourn.
She said the planning was done in co-ordination withMrs Kozlowski and said the RSVP on the invitations was to her at the Tyco office.
The guest list ranged from then-board member Lord Michael Ashcroft and Ms Kozlowski's parents to Elvis Smith - the code name used for singer Jimmy Buffett. Mr Buffett was hired to play a 45-60 minute set for $250,000.
Austin Campriello, attorney for Mr Kozlowski, tried to connect Tyco business with the party. On crossexamination, Ms Jacques testified that she had set up conference room space for Mr Kozlowski and Mr Swartz to hold a teleconference board meeting for Tycom, a Tyco subsidiary.
Ms Prue is expected to face intense cross-examination perhaps as early as Monday afternoon, which would be her third day on the witness stand. Her testimony touches on many of the primary charges and implicates Mr Swartz as much as Mr Kozlowski.
Ms Prue has testified that Mr Swartz never documented a large bonus to her, in spite of asking for it in the autumn of 2000. In 2002, inquiring again when the company had launched an internal investigation, "he said, `no, he fucked up,' and didn't have it," Ms Prue said.
Mr Kozlowski received $33m and $16.5m, and Mr Swartz $16m and $8m in loan forgiveness and bonuses for separate corporate milestones in 2000. Discussion or approval of these were not in compensation committee minutes, Ms Prue said.
Separately this week, Judge Michael Obus dismissed a juror, after both parties consented. The juror's brother worked for a law firm that is home to some of the defence team lawyers. This was not known during jury selection but came to light later.