updated 01:00 pm EDT, Fri April 13, 2012
Japan's FSA due to issue $2.5m fine to Olympus
Japan's Financial Services Agency (FSA) which overseas the country's markets, has recommended to fine Olympus nearly 200 million yen (about $2.5 million) for engaging in illegal accounting practices. The scandal is the biggest in Japan's corporate history. The company and six executives were criminally charged in March in the $1.7 billion fraud.
The fine was also endorsed by the Securities Exchange and Surveillance Commission (SESC). The same body found Olympus to make false filings between the financial years ending in March, 2007, and the first quarter ending in June of 2011. It falsely inflated its investment securities and goodwill assets. An external investigation panel showed that the firm hid investment losses for 13 years.
Olympus, in the meantime, is suing its current president and four of its internal directors for mismanagement. Shareholders are due to vote on a new board of directors on April 20, at a special meeting.