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Associated Press

Nov. 20, 2019, 10:59 p.m. EST

Japan Display employee suspected of embezzling $5.4 million in fake deals

Company apologizes, says it’s pursing criminal charges

By Associated Press

Bloomberg News
A Japan Display Inc. plant in Mobara, Japan.

TOKYO — Japan Display Inc. is pursuing criminal charges against an employee it has accused of taking 578 million yen ($5.4 million) in fake deals.

The Tokyo-based maker of displays said Thursday the money was lost at its Japan operations as the employee, since fired, made the illicit payments over four years through October last year.

It apologized in a statement to shareholders, customers and other parties for the scandal.

A company spokesman said the company learned about the wrongdoing through a whistleblower and filed a criminal complaint in August.

Japan Display (TKS:JP:6740)   did not provide further details as an investigation continues.

The company was formed in 2012, when Japanese rivals Sony Corp. (TKS:JP:6758)  , Toshiba Corp. (TKS:JP:6502)   and Hitachi (TKS:JP:6501)   combined their display operations.

It has racked up red ink for the last five years.

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