WASHINGTON (Dow Jones/AP) ? The Securities and Exchange Commission yesterday charged two former executives of Bermuda conglomerate Tyco International Ltd. executives in connection with frauds that inflated the company?s operating income by hundreds of millions of dollars.

Richard Power, who reported to now-jailed chief executive Dennis Kozlowski, and Edward Federman, who once served as controller and later chief financial officer of a major Tyco division, were accused of using improper accounting and structuring sham transactions, among other things.

Attorneys for Power, a resident of Palm Beach, Florida, and Federman, a resident of Boca Raton, Florida, didn?t immediately return phone calls.

Kozlowski is serving a sentence of eight years to 25 years in prison after he and chief financial officer Mark H. Swartz were convicted last year of looting the Bermuda conglomerate. They are appealing those sentences. A third former executive, Richard ?Skip? Heger, was accused of separate securities violations. He agreed to pay $450,000 to settle with the SEC. Heger had served as vice-president for finance of Tyco?s fire and security services division until he retired in 2002. He settled without admitting or denying wrongdoing.

The SEC said that Power devised a sham transaction involving Tyco?s security-services business. The ADT Securities Services Inc. unit sold alarm systems and