You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

Ex-Olympus executives get suspended sentences in fraud case

TOKYO — The former chairman of Olympus, the camera maker that has been embroiled in one of Japan’s biggest accounting frauds, was found guilty Wednesday of abetting a $1.7 billion cover-up. Tsuyoshi Kikukawa got a suspended three-year sentence, however, meaning he is likely to avoid prison. Hideo Yamada, a former audit officer, was given a suspended three-year sentence. Hisashi Mori, a former executive vice president, received a lesser suspended sentence. Tokyo District Court ordered Olympus to pay $7 million for falsifying financial reports.

The sentencing ends a scandal that pitted a former Olympus president, a Briton, against his Japanese colleagues, who eventually admitted to running a cover-up.

Continue reading below

Michael C. Woodford, Olympus’ first foreign chief executive, was fired in October 2011 after he presented evidence of accounting fraud.

Kikukawa, chairman at the time, took over as president and initially said Woodford’s Western management style was not good for Olympus. But a campaign by Woodford spurred an independent review that implicated Kikukawa and two others.

Prosecutors had asked for a five-year jail term for Kikukawa and a fine of 1 billion yen for Olympus.

Former executives who are thought to have made the decision to hide the losses were not charged because the statute of limitations had expired.

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of