Suspected Fraud by the Head of Finance at a U.S. Subsidiary and Establishment of a Special Investigation Committee
The Company's consolidated subsidiary, Sanyo Corporation of America (SCOA)
SCOA's deposits and funds located in the United States
An employee who was formerly SCOA's head of finance is suspected of having withdrawn deposits from SCOA or transferred funds on multiple occasions and misappropriated SCOA's funds for personal use. Details of the cause are under investigation.
Estimated total loss of US$3.9 million (approximately ¥609 million). Accounting classification: Not disclosed
The impact on the Company's consolidated results is currently undetermined. The announcement of results for the fiscal year ending September 2026 is scheduled for 9 November, with no change to the announcement timing at this time.
Under review, including the likelihood of recovering the misappropriated funds. Amount and counterparty: Not disclosed
Related procedures
Investigation by the special investigation committee. Legal action, including criminal complaints and civil claims for damages, is under consideration.
Relevant authorities (specific name: Not disclosed)
Company response
Pursuant to a resolution of the Board of Directors held on 18 September 2026, a special investigation committee was established comprising outside lawyers and others with no special interests in the Company or SCOA. The chair is Yuki Daisuke (結城 大輔), and the members are Tanaka Shinsuke (田仲 信介) and Karasawa Hideki (唐澤 英城).
Analysis of the causes and recommendations on measures to prevent recurrence. Identification of the causes and formulation and implementation of measures to prevent recurrence. Further strengthening of the Group-wide internal control and governance systems.
The Company will fully cooperate with the special investigation committee's investigation and work with its accounting auditor and the relevant authorities to implement appropriate accounting treatment and disclosure measures. Legal action, including criminal complaints and civil claims for damages, is under consideration, and the Company will respond based on the investigation findings and other information.
The Company will promptly disclose any matters requiring disclosure that become known based on the progress or findings of the special investigation committee's investigation.
| Item | Details |
|---|---|
| Event name | Suspected Fraud by the Head of Finance at a U.S. Subsidiary and Establishment of a Special Investigation Committee |
| Date of occurrence | From June through September 2026 (the period during which the individual is suspected of having withdrawn deposits from SCOA or transferred funds) |
| Date recognized / date notice received | Early September 2026 (identified through reconciliation of SCOA's cash receipts and disbursements records with its accounting books) |
| Subject Entity | The Company's consolidated subsidiary, Sanyo Corporation of America (SCOA) |
| Target Locations / Products | SCOA's deposits and funds located in the United States |
| Cause | An employee who was formerly SCOA's head of finance is suspected of having withdrawn deposits from SCOA or transferred funds on multiple occasions and misappropriated SCOA's funds for personal use. Details of the cause are under investigation. |
| Amount of Impact on Business Performance | Estimated total loss of US$3.9 million (approximately ¥609 million). Accounting classification: Not disclosed |
| Impact on Earnings Forecast | The impact on the Company's consolidated results is currently undetermined. The announcement of results for the fiscal year ending September 2026 is scheduled for 9 November, with no change to the announcement timing at this time. |
| Type of litigation or proceeding | Investigation by the special investigation committee. Legal action, including criminal complaints and civil claims for damages, is under consideration. |
| Court or authority | Relevant authorities (specific name: Not disclosed) |
| Amount of receivables at risk of non-collection or delayed collection | Under review, including the likelihood of recovering the misappropriated funds. Amount and counterparty: Not disclosed |
| Investigation structure | Pursuant to a resolution of the Board of Directors held on 18 September 2026, a special investigation committee was established comprising outside lawyers and others with no special interests in the Company or SCOA. The chair is Yuki Daisuke (結城 大輔), and the members are Tanaka Shinsuke (田仲 信介) and Karasawa Hideki (唐澤 英城). |
| Measures to prevent recurrence | Analysis of the causes and recommendations on measures to prevent recurrence. Identification of the causes and formulation and implementation of measures to prevent recurrence. Further strengthening of the Group-wide internal control and governance systems. |
| Outlook | The Company will fully cooperate with the special investigation committee's investigation and work with its accounting auditor and the relevant authorities to implement appropriate accounting treatment and disclosure measures. Legal action, including criminal complaints and civil claims for damages, is under consideration, and the Company will respond based on the investigation findings and other information. |
| Planned follow-up disclosure | The Company will promptly disclose any matters requiring disclosure that become known based on the progress or findings of the special investigation committee's investigation. |
Items this document does not state (10)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because an employee who was formerly SCOA's head of finance is suspected of having withdrawn deposits from SCOA or transferred funds on multiple occasions between June and September 2026 and misappropriated the funds for personal use.