Interim report due by June 30
Japanese gaming titan Kazuo Okada is the subject of an investigation by the company he founded, Universal Entertainment.
Universal officials have established a special committee to examine the outflow of 1 billion yen (US $17.3 million) from a subsidiary, Tiger Resort Asia Ltd., to an unnamed third party without going through proper fiduciary channels. The third party was later identified as Okada Holdings Ltd., then directed by Kazuo Okada. In a press release, Universal said HKD130 million of the loan sum in question was found to be for the purpose of “personal benefit for Chairman Okada.”
Pending the outcome of the investigation, “all rights and authorities” of the Japanese billionaire have been suspended by his own company.
The action is “about as close to being pitched out the front door and into the street as it gets,” wrote CDC Gaming Reports. “Although it’s labeled an improper loan, the ‘outflow’ has the distinct appearance of embezzlement.”
Okada has been accused of improprieties before. In 2012, he was drummed out of Wynn Resorts after allegations that he had offered bribes to Philippine casino officials to get into that jurisdiction. The FBI continues to investigate possible violations of the U.S. Foreign Corrupt Practices Act, looking at a $40 million payment Okada made in 2010 to a Philippine consultant. The FBI wants to know if the payment was made to grant Universal tax benefits and other concessions, according to Reuters.
In a statement, Universal said, “We sincerely apologize for having caused a great concern for our shareholders, investors, and business partners, as well as other players in the market. The company is committed to thoroughly conduct an investigation by the special investigation committee and to clarify the whole picture concerning this issue.”
Okada Holdings Ltd. holds a majority stake in Universal, whose shares fell 6.1 percent on the news in Tokyo. The special investigation committee will submit its first report by June 30. Universal operates a pachinko company in Japan, the worldwide slot manufacturer Aruze, and the Okada hotel casino in Manila’s Entertainment City, which only recently opened.
