Multiple allegations of deceit, fraud
The Philippine Department of Justice has recommended that charges be brought against Japanese billionaire Kazuo Okada for allegedly misappropriating $3.15 million from his company, Tiger Resort Leisure & Entertainment, operator of the Okada Manila resort in the Entertainment City casino zone.
According to the Reuters news agency, the DOJ indicted Okada for three counts of swindling after he acquired the money “through mistake or fraud” during his time as chief executive of Tiger Resort, a unit of Universal Entertainment.
In June of last year, the pachinko kingpin—for whom Okada Manila is named—was forced out of his roles at both Universal and the subsidiary following allegations that he misappropriated some $20 million in company funds for his personal use.
He was detained and questioned in Hong Kong for “corruption-related offenses” in August; according to the Financial Times, Okada built his empire as a manufacturer of slot machines and pachinko machines and at one point was the largest individual taxpayer in Japan. His fortunes started to fall after a well-publicized fallout with former pal Steve Wynn, with whom he founded Wynn Resorts. In 2012, Okada was expelled from Wynn Resorts after being accused of bribing gaming officials in the Philippines.
Okada continues to deny the allegations against him, and in October filed suit to take back control of his companies and resume his roles as chairman, CEO and director.
“I plan to get back my company,” he told Inside Asian Gaming. “I need to clear my name and prove I have done nothing wrong.”
To This Week in Asia, he insisted, “All the allegations made against me are entirely false. Universal is simply attempting to irreparably damage my reputation. I am confident that the investigation will prove the absurdity of these allegations and that I will be able to regain control of the companies I founded.”
The DOJ’s latest resolution, issued on December 7 but made public on December 17, reverses a May ruling by the Parañaque prosecutor that dismissed the fraud charges.
According to GGRAsia, in June 2017 Universal Entertainment Corp. declared that it had uncovered evidence that in 2015, Okada transferred HK$135 million (US$17.3 million) from Tiger Resort to a third party. Of that, HK$130 million was then transferred to Okada Holdings Ltd. for the “personal benefit of Chairman Okada.”
The Philippine DOJ stated in its resolution last week that the US$3 million allegedly transferred to Okada was not approved by the TRLEI board. “Such actions in violation of the complainant’s by-laws is enough probable cause to conclude that the release of amounts were irregular and done to the prejudice of the complainant,” the resolution states.
The operator of Okada Manila previously said the payments were facilitated by its former COO and President Takahiro Usui, who also was indicted for conspiracy in relation to the three counts of fraud, reported the Philippine Business Mirror.
Another complaint lodged by Tiger Resort involved a US$7 million contract to supply LED fittings for Okada Manila through another Okada company, Aruze Philippines Manufacturing Inc. Tiger alleged that the supply contract was granted to APMI at the behest of Okada in conspiracy with a close associate, Kengo Takeda, Tiger’s former chief technology officer.
