New York, Oct 01: Three trials involving top executives accused of fraud or obstructing justice got under way. These cases could set the tone for possible prosecution in a spate of financial scandals that have swept Wall Street and corporate America in recent years. Jury selection began in Manhattan Supreme Court in the trial of former Tyco International executives Dennis Kozlowski (left) and Mark Swartz, who stand accused of looting the Tyco of $600m to finance their lifestyles. Blocks away, jury selection began in the trial of former Credit Suisse First Boston investment banker Frank Quattrone, accused of interfering with probes of his stock-offering business.
And in federal court in Harrisburg (Pennsylvania), opening arguments in the trial of Franklin Brown, the former chief counsel of Rite Aid, began. The trial involves one of the largest corporate fraud scandals in US history. The Manhattan trials could set the tone for cases of corporate malfeasance such as Enron and Adelphia, which are expected to follow.
The prosecution of Brown, 75, could be easier. Four former Rite Aid executives, including the CEO and CFO, have pleaded guilty to criminal conspiracy. Bureau Report