Japanese authorities arrested seven people yesterday in connection with a $1.7bn accounting fraud at Olympus, including the camera company’s former chairman and outside financial advisers suspected of helping executives hide lossmaking investments.
Prosecutors said they believed that Tsuyoshi Kikukawa, the former chairman, and the other men had broken the country’s Financial Instruments and Exchange Act by filing false reports to tax officials.
The arrests were the first in an affair that has shaken corporate Japan.
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