Hasta La Gadget!

You might think a harmless white collar crime would escape the wheels of justice. After all, what’s a little $1.7 billion accounting scandal in the grand scheme of things? As it turns out, you wouldn’t be far wrong: none of the three senior figures sentenced in Japan today for falsifying Olympus Corp.’s financial accounts have been sent to jail. Former Chairman Tsuyoshi Kikukawa received a three-year suspended sentence, in light of the fact that he didn’t make the original decision to hide the firm’s financial losses, while a former executive VP and a former auditing officer also got suspended sentences after making similar defenses. The company itself was fined $7 million.

Meanwhile, the two men accused of starting the fraud, former presidents Masatoshi Kishimoto and Toshiro Shimoyama, have escaped all charges because, as reported by Kyodo News a couple of months ago, too much time has elapsed since the original crime. Oh well. If there’s any upside to this sorry saga, we guess it’s the fact that the whistleblower who lost his job after exposing the scandal, former CEO Michael Woodford, eventually saw some restitution.

Filed under: Cameras, Misc

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Source: Bloomberg

Three executives from troubled imaging giant Olympus have pleaded guilty to artificially boosting the company’s true value in 2007 and 2008 by concealing losses in financial statements. Former chairman Tsuyoshi Kikukawa, ex-auditor Hideo Yamada and former VP Hisashi Mori were charged with fraud in the scandal, which was brought to light last year by ex-CEO Michael Woodford. He was fired by the Olympus board for blowing the whistle, but reportedly received a large settlement for his troubles. The company has since confessed to cooking the books as far back as the ’90s to hide investment losses, and revealed in 2011 that it had a billion dollars less in value than previously stated. That, along with the poor performance of its camera division, has forced Olympus to seek a partner or raise capital to survive.

Filed under: Cameras

Former Olympus executives plead guilty in accounting fraud trial originally appeared on Engadget on Tue, 25 Sep 2012 01:40:00 EDT. Please see our terms for use of feeds.

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In the US, the e-book price fixing scandal appears to be winding towards its inevitable conclusion. Many of the publishers settled with the DOJ right off the bat, and now the states themselves have gotten three publishing houses to cough up $69 million in their own agreement. (Of course, Apple, Macmillan and Penguin have all decided to go the trial route, but we’ll have to wait till next year to see how that plays out.) In Europe, the battle is still raging on, but Reuters is reporting that the accused are offering concessions in a bid to put the antitrust allegations behind them. The only name missing from the list is Penguin, which may or may not be part of the plea deal. Not all the details of the proposals have been revealed yet, and there’s no guarantee the commission will accept them. The heart of the settlement, however, would involve allowing Amazon to sell e-books at a discounted price for two years. Would cheaper Kindle books be good, clean fun for the whole family? Sure, but it certainly pales in comparison to the potential penalties if Apple and their publishing partners go to trial.

Filed under: Apple

Apple and publishers offer deal to put price fixing scandal behind them in EU originally appeared on Engadget on Fri, 31 Aug 2012 10:36:00 EDT. Please see our terms for use of feeds.

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