Olympus execs arrested

Discussion in 'Micro 4/3 News and Rumors' started by Dan Ka, Feb 16, 2012.

  1. Dan Ka

    Dan Ka Mu-43 Regular

    Jan 11, 2011
    Northeastern Ohio
  2. Farcanalman


    Feb 12, 2012
    Not so bad then, especially when you consider that they are all former execs!

    • Like Like x 1
  3. krugorg

    krugorg Mu-43 Hall of Famer

    Jul 18, 2011
    Minnesota USA

    Yeah, when I first read the headline here, I had a visual of the police pulling people out of corner offices and meeting rooms at Oly. :eek:

    On a serious note, good to see that these former executives are getting some love from the justice system.

    Oh, and I just preordered the OMD today! :2thumbs:
    • Like Like x 1
  4. joanas-pangenber

    joanas-pangenber New to Mu-43

    Feb 17, 2012

    Four months after one of Japan's biggest corporate scandals, police and prosecutors arrested seven men over their role in a $1.7bn accounting fraud at medical equipment and camera maker Olympus.

    Tokyo prosecutors arrested ex-president Tsuyoshi Kikukawa, former executive vice-president Hisashi Mori and former auditor Hideo Yamada on suspicion of violating the Financial Instruments and Exchange Law, officials said.

    Also arrested were former bankers Akio Nakagawa and Nobumasa Yokoo and two others suspected of helping hide huge investment losses through complex deals.

    The three former executives had been identified by an investigative panel, commissioned by Olympus, as the main culprits in the fraud, seeking to delay the reckoning from risky investments made in the late-1980s bubble economy.

    The scandal was exposed in October by then-CEO Michael Woodford, who was sacked by the Olympus board after querying dubious deals later found to have been used to conceal the losses.

    Mr Woodford campaigned to win his job back, but gave up that bid last month, blaming cosy ties between management and big Japanese shareholders and citing the strain on his family.

    The arrests come as investors focus on who will run the once-proud company when its management steps down at a 20 April meeting of shareholders, and whether Olympus will seek a capital tie-up to fix its balance sheet.

    Olympus is banking on that April meeting marking a turning point in the scandal, with at least six of its 11-member board, including current President Shuichi Takayama, set to resign.

    An Olympus spokesman said the company would co-operate fully with the investigative authorities. It is also under investigation by law enforcement agencies in Japan, Britain and the United States.