Law enforcement and regulators' interest

Following his dismissal, Woodford passed on a file of information to the British Serious Fraud Office, and requested police protection. He hinted that the payments may have been linked to "forces behind" the Olympus board;^[52] Japanese newspaper Sankei went further, to suggest that the payments could be linked to the Yakuza.^[4] The Financial Times reported that relevant authorities in several jurisdictions were investigating the case.^[53] The Federal Bureau of Investigation (FBI), which had also been given files about the suspicious transactions by Woodford, opened its case in mid-October; other federal law enforcement agencies, including federal prosecutors in Manhattan, have taken an interest. The SEC is said to be examining Axes America. Experts speculate that US investigators were assessing whether there were kickbacks to Olympus officials or whether money laundering or other illicit acts were involved.^[42] The British Serious Fraud Office and the FBI were said to be working with the Japanese Financial Services Agency.^[53] Olympus disclosed that they were being investigated by the Tokyo Metropolitan Police,^[54] while unnamed sources said that a unit of the Tokyo police dealing with organised crime may also be involved in the investigation.^[8] The Japanese Securities and Exchange Surveillance Commission (SESC) and the Tokyo Stock Exchange are also reported to have taken an interest in the case.^[38]

The New York Times published details of an official investigators' memorandum prepared for the SESC, the Tokyo prosecutor’s office and the Tokyo Metropolitan Police Department which stated the true magnitude of losses was ¥481 billion ($6.25 billion). It said that of the "questionable acquisition payments, investments and advisory fees" made between 2000 to 2009, only ¥105 billion has been accounted for in some way. Investigators named Tsubasa Net, a software maker acquired by Olympus through ITX in 2005, as “a front company” with known affiliations with the Yamaguchi Gumi. Altis, Humalabo and News Chef – acquisitions advised by Global Company – were also identified as front companies with links to organized crime.^[1]

Date: 2015-01-29; view: 650