Tyco 'fraud' lawyer walks free

US prosecutors have suffered a further blow with the acquittal of Tyco International's former general counsel Mark Belnick on charges of securities fraud and grand larceny.

Authorities have spent more than two years pursuing cases against former executives of the company.

Their case against former chief executive Dennis Kozlowski and former chief financial officer Mark Swartz, who were charged with looting the company of more than $600m (£324m), ended in a mis-trial in April after a juror received a suspicious letter and phone call.

Belnick broke down in tears after the verdict was announced, hugging his wife and daughter. 'I feel terrific,' he said outside the court. 'Right now I just want to take a deep breath and go home.'

The charges that Belnick cheated shareholders and stole millions of dollars from the company largely centred on $32m in bonuses and company loans he received. The prosecution alleged that these were hidden from the board.

Prosecutors claimed Belnick received a $17m bonus from Kozlowski for helping the chief executive cover up suspicious payments to his girlfriend, but Belnick said that it was reward for his work in resolving an accounting investigation by the Securities and Exchange Commission.