HARTFORD, Connecticut?— A Tyco
International subsidiary will pay $10 million
in federal environmental fines for dumping wastewater
into a Connecticut town sewer system, the Associated
Press has learned.
Tyco Electronics Printed Circuit Group has been the subject of a lengthy federal
environmental probe. Three former employees have pleaded guilty to Clean Water
Act violations for covering up the wastewater discharge near its now-closed
plant in Manchester.
The corporate plea agreement will be finalized in federal court next week,
but two sources close to the case, who spoke on condition of anonymity, said
the $10 million figure had been agreed upon.
Company officials have acknowledged that the company was being investigated
by the U.S. Environmental Protection Agency and said it was cooperating. Company
spokesman David Polk would not comment on specifics of the case Thursday.
"Tyco is committed to operational excellence, and that includes running our facility
in accordance with environmental laws," Polk said. "Upon learning of the government's
investigation, we immediately began our own comprehensive internal investigation
and as a result, promptly took corrective actions."
U.S. Attorney Kevin O'Connor declined to comment on the Tyco case.
The Stafford-based circuit board group generated $403 million in revenue during
fiscal 2003, according to company reports. Officials said in a 2002 filing
that they did not believe that the federal probe would affect Tyco's financial
condition.
Connecticut Attorney General Richard Blumenthal and Department of Environmental
Protection Commissioner Arthur J. Rocque Jr. filed a civil suit last year alleging
similar violations of state environmental laws.
They said the company illegally built piping at its Manchester plant to allow
discharge of untreated materials into sanitary sewers and that both plants
failed to do required sampling and submit mandated reports.
Blumenthal said he was continuing his case. A spokesman for Rocque did not
return a phone call seeking comment.
A New York judge this month declared a mistrial in the case involving former
Tyco CEO L. Dennis Kozlowski and former CFO Mark Swartz, who were accused of
stealing $600 million from the company. The judge cited undue pressure on one
juror. A retrial is possible.
In trading Thursday on the New York Stock Exchange, Tyco shares were up 74
cents to close at $29.40.