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).


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.


Also read...

Confusion over big four Indian law change

Report says big four accounting firms may soon be able to practice law in India after all.