Slots manufacturer investigates fraudulent loan

Universal Entertainment, the slot machine manufacturer from Japan, is investigating chairman Kazuo Okada for a suspicious transfer.

Japan.- Kazuo Okada, founder and Chairman at the slot manufacturer Universal Entertainment Corp, is under investigation after transferring US$17.3 million to another business of his. The company revealed on Thursday that it’s reviewing the allegedly improper transfer that was made in March 2015.

Universal informed in a filing to the JASDAQ Securities Exchange that it has appointed a Special Investigation Committee to dig into the affair. The investigation crew is integrated by corporate auditors, Internal Audit Office members and independent external experts that will annalyse the allegedly fraudulent money movements that might have been orchestrated by Okada and Yoshinao Negishi, the company’s Director.

Okada and Negishi are believed to have transferred US$17.3 million from Tiger Resort Asia Ltd to another company on March 2015. The report filed with the JASDAQ indicates that the loan was made without the “proper internal decision-making processes.” After the initial transfer, the second company also moved US$16.7 million to another one called Okada Holdings Ltd., at which Universal’s founder was Director at the time. Said money movement is aparently intended to bring personal benefit to Okada, according to the report presented to Universal’s Board of Directors.

Both businessmen had their roles at the company suspended and are the main suspects of the ongoing investigation. The process is expected to be completed by the end of this month and the results should be revealed sometime around June 30.

Kazuo Okada already has a record of having his responsabilities at a company’s board suspended. In 2012, it happened when he was a board member of Wynn Resorts after allegedly bribing Philippine gambling officials.