Inside Asian Gaming

inside asian gaming October 2017 6 A Special Investigation Committee employed by Japanese gaming giant Universal Entertainment Corporation has found former chairman Kazuo Okada guilty of committing three acts of fraud. Universal, which first uncovered evidence of possible fraudulent acts by Mr Okada earlier this year, released the committee’s full findings which stated that the company’s founder “led and conducted the fraudulent acts” and that he “committed these acts for his own personal benefit … it can only be said that this is an extreme intermingling of private and public affairs and that there was a lack of a sense of ethics that one should naturally have as a director of a listed company.” The report also alleges that Mr Okada visited the home of former Director and General Manager of Administrative Division, Yoshinao Negishi, during the course of the Special Investigation Committee’s probe to “intimidate and threaten him with respect to the subject matter of the investigation.” Mr Negishi was suspended by Universal in June amid allegations he aided Mr Okada in an illegal transfer of funds from Universal subsidiary Committee finds Okada guilty of fraud, threats and intimidation Tiger Resort Asia Ltd (TRA) in March 2015. The HK$135 million transfer, described at the time as a loan, was the first of the three suspicious acts that instigated the investigation. Universal said it will now examine the Melco International Development has completed the purchase of Hard Rock International’s stake in a consortium developing an integrated resort in Cyprus after being granted approval by the local gaming authority. The deal sees Melco International acquire Hard Rock’s 35.37% interest in the consortium. The company’s interest has now risen to 70.74%, with local firm Cyprus Phassouri (Zakaki) Limited holding the other 29.26%. The consortium’s proposed IR – the first in Cyprus – will boast 100 gaming tables, 1,000 slot machines and a 500 room, five star hotel. Melco International, Hard Rock and CPZL were initially granted a gaming license in June, which includes a 15-year exclusivity agreement and also allows for the construction and operation of another four satellite casinos in Cyprus. Melco completes purchase of Hard Rock’s Cyprus IR stake measures it should take against both Mr Okada and Mr Negishi. It added that while Mr Negishi may be dismissed from his position or expelled from the company, “in reality there is room for doubt about the extent to which he could have stopped Mr Okada.”