3 Jul 2013 08:45am

Olympus chairman sentenced over accounting scandal

Three former executives of Japanese camera manufacturer Olympus have been sentenced for their role in a £1.1bn accounting scandal

Former chairman Tsuyoshi Kikukawa has been given a three-year jail sentence, and executives Hisashi Mori and Hideo Yamada have been sentenced to two-and-a-half-years and three years respectively.

In addition, Olympus has been ordered to pay 700m yen (£4.6m) in fines.

The three pleaded guilty last year to charges of falsifying accounts to cover up losses of £1.1bn, one of the largest financial frauds in Japan’s history.

The scandal emerged in 2011 after then CEO Michael Woodford was dismissed from his post for challenging Kikukawa and the board over several large and obscure payments relating to acquisitions.

An investigation was launched, which revealed a cover-up of losses dating back more than 10 years. Kikukawa, Mori and Yamada were arrested in February last year.

Woodford reached an out-of-court settlement last May over unfair dismissal. Last January, he told economia why he felt the need to blow the whistle on the company’s board and why he didn’t trust his CFO. Read the full interview here.

Helen Roxburgh


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