News Column

Olympus Execs Get Suspended Sentences

July 3, 2013

A former chairman of Olympus Corp and two other executives received suspended sentences Wednesday for concealing years of massive investment losses.

Tsuyoshi Kikukawa, Hideo Yamada and Hisashi Mori had admitted falsifying financial statements to hide losses of about 117 billion yen (1.17 billion dollars) dating to the 1990s at the Japanese maker of digital cameras and medical devices.

Kikukawa and Yamada were sentenced to three years in prison, suspended for five years, while Mori received a 30-month prison term, suspended for four years. Tokyo District Court Judge Hiroaki Saito also fined Olympus 700 million yen.

The scandal surfaced in October 2011 after former president and chief executive Michael Woodford raised questions over dubious accounting related to the company's corporate acquisitions.

The accounting scandal, one of Japan's largest, caused Olympus' stock price to plummet more than 80 per cent.

In September, Sony Corp acquired a minority stake in Olympus for 50 billion yen, making it the largest shareholder.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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