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In the spring of 2002, Tyco CEO Dennis Kozlowski and CFO were arrested amid a scandal involving extravagant expenses, such as two million dollar toga parties and six thousand dollar shower curtains, amidst larger corporate fraud. Tyco's board of directors became aware of the issues after Kozlowski's departure. Eric Pell, who served as Tyco's vice president for corporate governance from 2002 to 2007, noted the absence of a whistleblower in this scandal, which highlighted the intimidating corporate culture fostered by Kozlowski, who had been with the company since 1976. Pell now runs his own consulting company and discussed these events with INSEAD students.
