Prosecutors are to launch an investigation into the former chairman of a paper manufacturing company who allegedly borrowed 10.6 billion yen from one of the firm's subsidiaries.
Mototaka Ikawa, 47, the former chairman of Daio Paper Corp, is believed to have gambled away billions of yen of the firm's money at casinos in Macau and Las Vegas.
According to TV Asahi, investigators at the Tokyo District Public Prosecutors Office will question Ikawa over a suspected breach of trust.
Daio, the country's third-largest paper mill was founded by Ikawa's grandfather.
A special committee set up by Daio to investigate the matter found that Ikawa borrowed a total of 10.68 billion yen. The committee said the money was transferred to bank accounts in Ikawa's name between May 2010 and September 2011.
Although Ikawa returned some of the money, as of the end of October, 5.93 billion yen had still not been recovered.
Daio Paper has filed a criminal complaint with prosecutors based on the report. The committee found that some of the loans were made without collateral and without the approval of the board of directors, as is required by law.
NHK reported that Ikawa would call the heads of the subsidiary companies and tell them how much money to deposit in his personal bank account or the account of a Japanese firm that operates casinos in Las Vegas and Macao.
No collateral was asked for and the board of directors were never informed, the panel said.
Employees were quoted as saying that no one dared questioned the orders of any of the Ikawa family.© Japan Today