Leader paper maker Daio Paper Corp said Friday it intends to file a criminal complaint against former chairman Mototaka Ikawa over 10.68 billion yen in loans which he demanded from seven group companies on 26 occasions from May 2010 to September this year.
Ikawa is the grandson of the company's founder. His father, Takao Ikawa is a company adviser, and his younger brother Takahiro sits on the board of directors. The company dismissed the father and the younger brother on Friday. Ikawa resigned last month.
NHK reported that an in-house investigative panel will demand that Ikawa explain where the money went. Ikawa has repaid 4.75 billion yen, but has not said what he did with the rest.
He reportedly spent the bulk of the money on high living and gambling in Macao.
The panel said 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, NHK reported.
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