TYCO---Allan (medium)
>> we’re back. janus capital may reach an agreement with regulators as soon as next month. the money manager is in talks with new york attorney general eliot spitzer and the s.e.c. to settle charges it allowed some investors to make improper mutual fund trades. people familiar with the matter say janus will probably pay less than $600 million. in related news, a report from putnam investment trustees says management was slow to respond to allegations of mutual fund trading abuses. the marsh and mcclellan mutual fund unit was the first to be formally accused of wrongdoing in the investigations of improper trading last year. the trustee’s report says putnam’s management failed to report the board―to the board regarding the trading abuses. jurors at the tyco trial ended a fourth day of deliberations after renewed focus on the meaning of the term criminal intent. allan dodds frank has a wrap of the day’s action at the trial.
>> the jurors will go into day five of deliberations tomorrow morning after being instructed today for the third time about one of the key elements of the trial. the jury’s request to the judge concerned the state of mind which former tyco executives dennis kozlowski and mark swartz had when they remarks, a ranged to get 10’s of millions of dollars from the company. the jurors asked the judge to repeat the entire definition of criminal intent again and go slowly. the prosecution says the 57-year-old kozlowski and swartz, 43-year-old former c.f.o., told $170 million from the company in unauthorized loans and bonuses and are chargedy with frauding tyco investors of $450 million. the jury had asked the judge on friday to explain what constitutes criminal intent and whether a defendant could be found not guilty if he believes what he was doing was legal. today, the judge repeated the six-minute answer given to the% -jury on friday saying “a defendant is something in if he actually believes he is authorized to take the property.” he added “the ultimate test is what the defendant believed at the time of the incident.” the judge also read instructions emphasizing that if a defendant knew it was taking property that was not authorized, he should be found guilty.
>> it seems like all these read-backs, the questions are pertaining to swartz, the number two guy, but not the top man, kozlowski.
>> that’s right. somewhat understandable because swartz was the only defense witness and kozlowski did not testify. but the last request from the jury this afternoon did pertain to kozlowski. it was―they asked for documents about $20 million in payments made to frank walsh, tyco director, who claimed he helped broker the purchase of c.i.t. walsh sent the documents to mark swartz and an investor testified he invested $50 million in the company based on kozlowski’s representation that payment of $20 million to walsh was authorized to the tyco board which the prosecution says was not true.
>> i’m sure we’ll see you here tomorrow. thank you very much. turning to world and national news, president bush says if he’d had any indication before
