TOKYO (TR) – Investigators raided the headquarters of troubled camera and endoscope maker Olympus and the homes of former executives as part of the probe into the Japanese company’s admitted attempt to cover-up massive losses, the Associated Press said.
Local reports said the home of former President Tsuyoshi Kikukawa was one of those raided by prosecutors, the AP reported. Kikukawa is a leading suspect in the 92-year-old company’s scheme to hide $1.5 billion in investment losses dating back to the 1990s.
The scandal came to light after former Chief Executive Officer Michael Woodford said he was dismissed in mid-October after he raised questions about deals, including the $687 million fee it paid in 2008 to an adviser in the $2 billion acquisition of U.K. medical equipment company Gyrus Group Plc. Olympus later admitted to paying inflated fees for that deal and others in order to secretly cover its losses.
Olympus beat a deadline with hours to spare last week to avoid delisting from the Tokyo Stock Exchange when it filed corrected statements covering a five year period in which it showed a nearly $1.1 billion reduction in net assets. Media report this week said Olympus plans to issue $1.3 billion (100 billion yen) in new shares to shore up its depleted finances.