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In spring 2002, Tyco CEO Dennis Kozlowski and CFO were arrested amid allegations of extravagant spending, including two million-dollar toga parties and $6,000 shower curtains, alongside significant corporate embezzlement totaling $600 million. After Kozlowski's removal, Eric Pell, Tyco's VP for corporate governance from 2002 to 2007, was appointed to help address the issues. Pell highlighted the absence of a whistleblower in the scandal, attributing it to the intimidating culture established by Kozlowski, who had been with the company since 1976. This environment discouraged employees from speaking up, contributing to the prolonged misconduct before the SEC took notice.