TOKYO -- Scandal-wracked Olympus Corp. (7733.TO) and three of
its former top executives pleaded guilty in court Tuesday over
charges that they covered up losses worth $1.7 billion stemming
from bad investments.
Former President Tsuyoshi Kikukawa apologized in Tokyo District
Court and said he would take "full responsibility" for the crime
that came to light when his U.K. successor blew the whistle.
"All responsibility rests with me as the president. I shall take
full responsibility," Mr. Kikukawa told the court at its first
hearing.
"I sincerely apologize for all the troubles that I caused," he
said.
The case was originally thrust into the spotlight last year by
Michael Woodford, who replaced Mr. Kikukawa at the head of the
company and became the first foreigner to lead the camera and
endoscope maker.
He initially internally questioned $1.7 billion in losses at the
company, but said he was abruptly demoted shortly before exposing a
scheme in which huge losses were moved off the company's balance
sheet.
Mr. Kikukawa's guilty plea was joined by two fellow former
Olympus officers, ex-vice president Hisashi Mori and former auditor
Hideo Yamada, and the company itself.
Prosecutors have alleged that Olympus started using a complex
accounting mechanism to hide losses that came from bad investments
made in the 1990s, with the company's top officers, including
former presidents, approving the moves.
According to the indictment, Mr. Kikukawa, Mr. Mori and Mr.
Yamada conspired with outside advisers to hide the losses via
purchases of foreign companies and overpriced consulting fees.