Japanese slot machine manufacturer, Universal Entertainment Corp says it is investigating the possibility of “fraudulent acts” related to a JPY 2 billion loan conducted by its founder and chairman Kazuo Okada in 2015.
In an extraordinary board meeting held on May 23, 2017, a report made by Mr. Nobuyoshi Ichikura, a full-time corporate auditor of the company, noted there was a possibility that fraudulent acts were carried out in connection with a loan extended from Tiger Resort Asia Limited to a third party that was processed by Kazuo Okada.
“Specifically, it was reported to the company by the in-house investigation team that there was a suspicion that the loan amounting to HK$135 million from TRA to a third party made by Chairman Okada and Director Yoshinao Negishi in March 2015 was made in violation of internal procedures of the company,” said Universal in a filing to JASDAQ on Thursday.
Universal Entertainment says it has established an investigative panel to further look into the transfer of funds, and an interim report is expected to be completed around the end of June.
The company has also suspended all rights and authorities previously held by Chairman Okada and Director Negishi in the company.