Tuesday September 23, 2014

Ex-Olympus chairman admits accounting fraud

Olympus Corp. former Chairman Tsuyoshi Kikukawa pleaded guilty to covering up the camera maker’s losses.

Business Week confirms, “Olympus Corp.’s former Chairman Tsuyoshi Kikukawa pleaded guilty to covering up losses at the Japanese camera maker in an accounting fraud case that sparked criticism of ineffective corporate governance in Japan.” Kikukawa along with ex-Olympus executive vice president Hisashi Mori and former auditing officer Hideo Yamada all pleaded guilty on Tuesday to using fraudulent takeover transactions to hide losses for more than a decade beginning in the 1990s. The three executives now face up to 10 years in prison and fines. Jamie Allen, secretary general of the Asian Corporate Governance Association, comments, “We’re looking for a strong reaction from the court in terms of a strong sentence. That’s what investors are looking for and clearly that’s what the government would like.”

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