The executive, Patricia Prue, said L. Dennis Kozlowski, Tyco's former chief executive, and Mark H. Swartz, the former chief financial officer, told her that the company was forgiving the relocation loans of employees who worked on a stock offering for TyCom, a Tyco unit that made undersea cable.
He did receive more than $14 million in relocation loans from Tyco.
Mr. Kozlowski's relocation loans were listed under "Note Receivable Employee A," Ms. Rex said.
Similarly, Mr. Belnick relied on the advice of the chief financial officer, Mr. Swartz, on the propriety and the disclosure of the relocation loans, Mr. Weingarten told the jury.
Most lawyers agree that signing loans, relocation loans and loans to exercise stock options or buy stock are usually no-nos.
He said Mr. Kozlowski suggested the full relocation loan after Mr. Belnick approached him about the smaller loan.
Included on the list is a $14 million relocation loan to Mr. Belnick that the board members say he tried to conceal.
Instead, Swartz said, he had had an outstanding relocation loan balance from Tyco reduced by $12.5 million.
Kozlowski, and an events planner who admitted having an affair with the ex-CEO, also had their relocation loan balances reduced by $25 million and $1 million, respectively.
But after years of protests that the building of the dams was leading to the forced relocation of hundreds of thousands of people and widespread environmental damage, the bank commissioned an independent review in 1992 that found that the bank had violated many of its own policies in approving loans for the dams.
