21 Dec, 2011

Japanese prosecutors have raided the headquarters of Japanese technology giant, Olympus, as part of the ongoing investigation into accusations that considerable losses endured over several years were hidden with the aid of three executives paying excessive fees to takeover advisers.


This the latest development in the scandal which first came to light following accusations from the former Olympus chief executive officer last month.  Michael C. Woodford made accusations that over $1 billion was ‘siphoned’ through offshore funds, reports Bloomberg; allegations that have seriously affected Olympus’ stock value, causing it to drop by 70 per cent. In a statement from the company, Olympus said that an independent investigation discovered that bad investments that occurred in the 1990s were concealed by advisory fees and takeover payments.


The BBC reported that Olympus admitted hiding $1.5bn (£968m) worth of losses over a twenty year period.


According to Bloomberg, President Shuichi has said that Former Olympus Chairman Tsuyoshi Kikukawa, Executive Vice President Hisashi Mori and auditor Hideo Yamada were all involved in the cover up.

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