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Former Daio Paper Corp Chairman Mototaka Ikawa, who was arrested in November for allegedly siphoning off billions of yen from the company's subsidiaries to pay for his gambling addiction, is to be arrested again following the emergence of new evidence.
Investigators from the Tokyo District Public Prosecutors Office's special investigation unit arrested Ikawa in November on suspicion of aggravated breach of trust, a violation of the Japanese Companies Law. At the time Ikawa, the grandson of Isekichi Ikawa, the founder of the company, admitted gambling with about 10.6 billion yen he borrowed from Daio subsidiaries.
He subsequently issued a written apology saying, "It was all due to my lack of discretion. I deeply regret what I did."
However, TV Asahi reported Saturday that investigators now say that they have uncovered evidence of further unsecured loans from other company subsidiaries that were not previously disclosed. The new debts bring the total amount to 15 billion yen.
The company's stock was placed under supervision by the Tokyo Stock Exchange on Nov 10, when it became clear the company might not be able to submit its earnings report for the period ending in September. Daio, however, said this week that it can submit the midyear earnings report before the final deadline of Dec 14. Failure to submit the report will result in delisting.
Daio paper has 35 consolidated subsidiaries across the country and two overseas subsidiaries. Ikawa joined the company in 1987 after studying law at the University of Tokyo. He assumed the president's post in 2007 at the age of 42 and became chairman in June.
© Japan Today
13 Comments
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herefornow
Up, no question about it, Edano was right -- corporate governance in Japan is clearly on a par with the U.S. I mean all this guy did is take about $200 MILLION in company funds -- actually, share-holders' funds -- to go to Vegas and gamble without any formal approvals. He just demanded it. Unbelievable, if we were not talking about Japan.
koiwaicoffee
Precisely, we are talking about Japan, one of the few countries where a chairman can do stuff like that without anyone saying a word
sensei258
Arrested again, apologized to again, released with a polite request to stop doing that, again.
nath
Translation: I'm sorry I got caught, I should've won more, and this would be a non-issue. 'Sorry for the inconvenience...
GG2141
US$192,000,000 ($192 million)
WOW! What a douche.
herefornow
Did he graduate? Hate to think he did, as that would not reflect well on the University of Tokyo's las school. Because he apparetly learned nothing.
avenger
Graduating from university is a joke. They learn nothing.
pacific08
Untrue : they learn how to syphon $200 MILLION from their cie funds...almost without being charged !
MaboDofuIsSpicy
This is nothing like the US. Edano is wrong.
Elbuda Mexicano
Ok! Ok! So this guy is an idiot?? Gambling is an addiction, no surprise here!!
bluesea67
No in the US the actually called the money they steal a bonus therefore its legal. Look at Wall Street..
Serrano
"is to be arrested again"
Did he escape from custody? ha ha
"10.6 billion yen he borrowed"
He stole it.
Vernie Jefferies
When did Pachinko get so expensive?