Michael Woodford demonstrates oversight by Japan’s regulators
Daylife/Reuters Pictures used by permission
Four months after one of Japan’s biggest corporate scandals, police and prosecutors on have arrested seven men, including the former president of Olympus Corp and ex-bankers, over their role in a $1.7 billion accounting fraud at the medical equipment and camera maker.
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 M&A deals…
The scandal was exposed in October by then-CEO Michael Woodford, who was sacked by the Olympus board after querying dubious M&A deals later found to have been used to conceal the losses. Woodford campaigned to win his job back, but gave up that bid last month, blaming cozy ties between management and big Japanese shareholders and citing the strain on his family.
“After going to hell and back, this is a day to remember,” Woodford said in an email on Thursday. The Briton, who was a rare foreign CEO in Japan, plans to write a book about his experiences uncovering the scandal…
Olympus in December filed five years’ worth of corrected financial statements plus overdue first-half results…
Looking forward to Woodford’s book. Sometimes global finance produces as much “innovative” writing as global politics.
Bill Bard says:
See, they are all at it.