Cover-up scandal shocks corporate Japan


By Julia Duke

04 July 2013 at 12:12 BST


Three members of the Tokyo based Olympus Corp have been found guilty for their role in an extensive fraudulent scheme, which has shell-shocked corporate Japan.

Former Olympus president Tsuyoshi Kikukawa,an auditor and a third executive were convicted for reporting false financial information and breaching security laws, the Global Post reports.  

Jail time

After pleading guilty, Kikukawa and the auditor were both given a three year  prison sentence whilst the third executive received two-and-half years. However, they will not actually serve time because of their age, the court ruled, suspending for up to five years and fining the company 700 million yen ($7 million).

Whistleblower

The scandal first started when Michael Woodford, Olympus’ British chief executive,questioned the legitimacy of financial reports in 2011. The three later admitted to the ($1.2 billion) cover-up, which began in the 1990s.
Judge Hiroaki Saito was cited by the Global Post saying that the conspiracy questioned the Tokyo stock market’s reputation and credibility abroad.
As a result, Kikukawa is being sued by Olympus for damages, according to the report.

 
   
 
 
 

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