The Securities and Exchange Commission has charged three former Tyco International Ltd. financial executives with securities-law violations to boost reported income and cash flow by well over 700 million dollars from 1997 to 2002, The Wall Street Journal reported on Friday.

Tyco, a conglomerate whose nominal headquarters is now in Bermuda, became a stock market darling in the 1990s, revered for its predictable growth fueled by aggressive acquisitions. However, its stock price started tumbling in 2002 after questions were raised about accounting practices, according to the report.

Last year, Tyco's former chief executive, L. Dennis Kozlowski was convicted of looting the company. He and former chief financial officer Mark H. Swartz are serving prison sentences in New York state, said the report.

The SEC's civil charges name two lower-level officials who reported to Kozlowski or Swartz. Richard D. Power, 58, held a series of financial positions in a 20-year career at Tyco, including chief financial officer and vice president-special projects. Edward Federman, 53, was controller of Tyco and later chief financial officer of Tyco Electronics, a big division. The SEC is seeking disgorgement of unspecified gains and fines, said the report.

A third former official, Richard "Skip" Heger, was accused of separate securities violations. He agreed to pay 450,000 dollars to settle with the SEC, without admitting or denying wrongdoing.

Heger had served as vice president for finance of Tyco's fire and security services division until 2002.

Source: Xinhua