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Judge to rule on charges against Tyco chiefs

NEW YORK (Bloomberg) ? A New York judge said he will decide today whether to dismiss some of the charges against former Tyco International Ltd. Chief Executive Officer L. Dennis Kozlowski before the case goes to the jury.

State Supreme Court Justice Michael Obus scheduled an 11 a.m. hearing and will rule on bids by Kozlowski and his co-defendant, former Tyco chief financial officer Mark Swartz, to dismiss many of the most serious allegations.

"I think I understand your positions so far," Obus, 56, told lawyers after two days of arguments ended yesterday. "What I will do is another matter."

Kozlowski and Swartz have been on trial since September, accused of stealing $170 million in unauthorised bonuses from Tyco and defrauding shareholders of $430 million by selling stock inflated by misrepresentations of company finances. Testimony has concluded. Closing arguments are scheduled to start Monday.

Kozlowski's attorneys have focused special attention on winning dismissal of a charge of enterprise corruption, a racketeering allegation usually used in prosecuting organised crime cases. Obus said that his pre-trial decision not to throw out the charge "was hardly a ringing endorsement" of it.

Kozlowski, 57, and Swartz, 43, would face as many as 25 years in prison if convicted on that charge. Even if it's dismissed, each faces as many as 30 years in prison if convicted of larceny and securities fraud.

Defence attorneys have asked Obus to throw out securities- fraud charges against the two men, arguing prosecutors haven't clearly identified a victim of the alleged fraud. The defence is also seeking dismissal of several larceny counts, arguing the alleged thefts didn't occur.