Andre Yoskowitz
22 Jul 2015 10:05
Toshiba president Hisao Tanaka, Vice Chairman Norio Sasaki and adviser Atsutoshi Nishida have all resigned this week after it was discovered that Toshiba fraudulently inflated their earnings by $1.2 billion over the last 6 years.
An independent investigation found that the Toshiba executives set profit targets that were impossible to reach, which led to the inflated accounting. The investigators say the accounting scam was "skillfully hidden" from investors and others.
"I was shocked by the fact that one of the leading companies organizationally conducted such a thing," said Koichi Ueda, who led the investigating committee. Ueda was a former investigator with the Tokyo District Public Prosecutor's Office.
Since Toshiba announced the investigation in May, shares have fallen 18 percent and the company suspended its dividend and all quarterly forecasts.
Source:
BBG