WASHINGTON (Bloomberg) ? Now that former Tyco International Ltd. Chief Executive L. Dennis Kozlowski and his finance chief, Mark Swartz, have been convicted of stealing from the company, the Securities and Exchange Commission can proceed with its civil suit against the two men, a federal judge said.

The SEC case had been on hold for more than two years during the criminal trial of the former executives in New York state court. In June Manhattan jurors found Kozlowski and Swartz guilty of grand larceny, securities fraud, conspiracy and falsifying business records.

US District Judge Robert Sweet lifted a stay on discovery in the SEC?s suit on October 31, clearing the way for pretrial collection of evidence. Sweet halted the proceedings in April 2003 at the request of Manhattan District Attorney Robert Morgenthau, while the criminal case was pending.

The SEC accused Kozlowski, Swartz and former Tyco General Counsel Mark A. Belnick of fraud in September, 2002, alleging that the three men failed to disclose millions of dollars in low-and no-interest loans they got from the company. They also sold Tyco shares valued at millions of dollars while failing to disclose their ?self-dealing,? the SEC said.

Kozlowski, 59, and Swartz, 45, were convicted of stealing more than $150 million from Tyco through unauthorised bonuses and company loans that were forgiven. They were also found guilty of defrauding Tyco shareholders of hundreds of millions more. The two men began serving prison terms of eight-and-a-third to 25 years on September 19. They have appealed their convictions. Belnick was tried and acquitted of similar charges in July 2004.

Bermuda-based Tyco, which operates out of West Windsor, New Jersey, is the world?s biggest maker of electronic connectors, industrial valves and security systems.