Universal Entertainment Corp founder Kazuo Okada has been suspended by his own company amid allegations that he illegally transferred funds to a company he controls.
In a statement late last week, Universal announced the establishment of a special investigation committee to investigate the “possibility that fraudulent acts were carried out” including the transfer of around HK$135 million on 20 March 2015 from Universal subsidiary Tiger Resort Asia Ltd to a third party. HK$130 million was then transferred to a company controlled by Mr Okada, Okada Holdings Ltd, with the purpose of achieving “personal benefit for Chairman Okada.”
The transfer, described as a loan, was uncovered earlier this year by Universal Entertainment’s corporate auditor Mr Nobuyoshi Ichikura and resulted in Mr Okada and Mr Yoshinao Negishi, Director and General Manager of Administrative Division, being suspended from all company duties.
The subsequent investigation uncovered “a serious violation of governance,” Universal said, with the loan transfer having been processed by Mr Okada and Mr Negishi made “in violation of internal procedures of the Company.”
“Following this, the Company has decided to establish a special investigation committee consisting of three external experts who have cooperated with the Company in conducting the investigation by the in-house investigation team as explained above,” Universal added.
“The aim of the special investigation committee is to conduct a thorough investigation from a professional and objective viewpoint on the present case including the presence or absence of other issues, to clarify the whole picture and to formulate measures to prevent reoccurrence.”
The Special Investigation Committee is expected to submit its report by 30 June 2017. Universal Entertainment said it expects to recoup all of the loaned funds.
The allegations are the latest in a series of controversies that have engulfed Mr Okada in recent years, including his messy split from Wynn Resorts in 2012 amid allegations he had violated anti-bribery laws by treating Philippines officials to expensive nights out in Las Vegas and Macau – allegations he has denied. Mr Okada is also under investigation by the FBI for a US$40 million payment to a consultant in Manila, allegedly to bribe officials and gain various concessions at his Okada Manila property which opened in December.
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