Securities watchdog charge Kanebo with accounting fraud

The Securities and Exchange Surveillance Commission filed a criminal accusation of accounting fraud Wednesday against Kanebo Ltd. and three former executives of the textile and cosmetics company now undergoing rehabilitation.

The three executives — former President Takashi Hoashi, 69, former Vice President Takashi Miyahara, 63, and former Managing Director Kenzaburo Shimada, 59 — were arrested July 29 for allegedly submitted falsified financial statements to financial authorities

Ex-Kanebo bosses in fraud arrest

Japanese prosecutors arrested three former executives of cosmetics firm Kanebo on Friday for alleged fraud.

The troubled firm is currently being managed by the state-backed Industrial Revitalisation Corporation of Japan.

The charges facing the three executives, including former president Takashi Hoashi, are that the firm hid debts for five years to March 2003

Cosmetic firm in accounts scandal

Cosmetics giant Kanebo has admitted overstating profits in what could turn out to be Japan’s largest accounting fraud involving a non-financial firm.

The company said its net profits for the four years to March 2003 had been inflated by $1.37bn (£723m) and it had recorded a loss over the period