A state judge on Tuesday declined to consolidate a sales-tax case against L. Dennis Kozlowski, Tyco International Ltd.'s former chief executive, with the retrial of a corporate-looting case against him and Mark H. Swartz, Tyco's ex-chief financial officer.
New York State Supreme Court Justice Michael J. Obus denied a motion by prosecutors to consolidate the cases after prosecutors said they intended to pursue an enterprise-corruption charge against Kozlowski and Swartz.
In their first corporate-looting trial, the judge dismissed an enterprise-corruption charge against the two former executives before the case went to the jury.
The case ended in a mistrial in May after a juror was improperly contacted during deliberations. A retrial is scheduled for January.
"We are essentially back to where we were in terms of counts," Justice Obus said Tuesday.
Kozlowski and Swartz are accused of rewarding themselves with giant bonuses and other unauthorized compensation from Tyco. They have denied wrongdoing.
Separately, Kozlowski still faces charges of conspiracy, falsifying business records and tampering with physical evidence in connection with charges that he failed to pay New York sales tax on millions of dollars of artwork.
The judge also denied a motion to dismiss a conspiracy charge against Kozlowski and Swartz, and a motion by Swartz for a separate trial.
Defense attorneys plan to file motions asking the judge to again dismiss the enterprise-corruption count, saying it will create a "double jeopardy" for the defendants. The judge will decide on those motions on Oct. 26.