Japanese camera as well as maker of medical equipment Olympus along with its subsidiary of UK, Gyrus Group, would be prosecuted through the stern Fraud Office of UK.They’ve been charged for providing deceptive, false or misleading material in the accounts intended for the Gyrus Group.
Acquisition of Olympus of Gyrus happened to be one of those deals called to question as $1.7bn accounting scandal in Japanese firm which got unfolded during 2011.3 former executives are given terms of suspended jail over this affair.
Tsuyoshi Kikukawa, the former chairman as well as Hideo Yamada and Hisashi Mori, the executives got sentenced for the role they played, after they pleaded guilty the previous year to the charges regarding falsifying of accounts for covering up the losses amounting to $1.7bn.
This is considered as quite a significant financial fraud in the history of Japan and it did come to the light at the time chief executive of that time, Michael Woodford, got dismissed from the post after he challenged Mr Kikukawa along with the board regarding suspiciously huge payments that related to the acquisitions.Gyrus purchase was a deal which Mr Woodford did raise questions about.
It was claimed by him that he got fired just for raising this issue and contacted Serious Fraud Office (SFO) of UK about Japanese firm’s practices of accounting.This led to one investigation getting launched within Japan, that revealed one cover-up regarding to losses that dates back to 1990s.
Earlier in this year, one Japanese court did order Olympus that it should pay yen 700m yen in fines.SFO also has been conducting an investigation on its own into this matter.
According to Olympus,
“It is difficult to predict the outcome of this matter or estimate the level of fines that may be imposed on the company and Gyrus Group Limited. The potential financial impact of this prosecution on Olympus group’s business is unclear”.