Universal Entertainment reports Okada arrest to Tokyo stock market, vows to help in probe

Japan's Universal Entertainment Corp. confirmed that its former chairman Kazuo Okada was arrested last week in Hong Kong for alleged conspiracy to defraud the company, and assured authorities it will help in the investigation.

“Upon our inquiries with the Hong Kong ICAC (Independent Commission Against Corruption), it is given to understand that Mr. Okada has been arrested by the ICAC in relation to various corruption-related offenses," Universal Entertainment said in a disclosure to the Tokyo stock exchange.

It was Hong Kong-based publication Headline Daily who earlier reported that the Japanese billionaire was arrested in the former British colony by the ICAC for conspiracy to defraud Okada Holdings of ¥135 million ($19.7 million). 

Okada's Philippine lawyer, however, belied the report saying that the case has already been dismissed as of May and it "could be merely a rehash of the case that had already been previously dismissed.” The ICAC has been quoted in reports as declining to comment, saying it does not discuss individual cases.

But Universal Entertainment disclosed it will render full support and assistance to the ICAC and other law enforcement authorities should the situation require it.

"We will render our full support and assistance to the ICAC and other law enforcement authorities should the situation require," the company said.

Universal Entertainment is Japan’s leading manufacturer of pachinko, slot machines, arcade games and other gaming products, and a publisher of video games, and has subsidiaries in the US and the Philippines.

Okada was its chairman of the board until June 29 last year. Okada Manila owner, Tiger Resort Leisure & Entertainment Inc. (TRLEI) is a subsidiary of Universal Entertainment in the Philippines.

“Mr. Okada is currently released subject to bail conditions imposed on him by the ICAC,” Universal Entertainment said.

Reports said Okada was taken in along with a certain Li Jian for alleged conspiracy to defraud the Hong Kong-registered family company Okada Holdings of ¥135 million or $19.7 million, the company said.

Li Jian, reportedly a director of New Games Corp., allegedly received one million yuan from Okada, according to the same report, it added.
 
Okada is also facing separate cases of estafa in the Philippines for allegedly embezzling more than $10 million in TRLEI's funds.

The complaints, filed by majority shareholders of TRLEI, are pending with the Department of Justice.

TRLEI has been asking the DOJ to set aside earlier resolutions issued by Paranaque City Prosecutor Amerhassan Paudac which had been leaked and its pertinent portions found their way to the social media accounts of Okada’s Korean girlfriend, Chloe Kim.

TRLEI earlier said the leakage, along with the wrongful disposition and resolution of the cases, indicated the prosecutor’s undue interest in the cases and which did not only violate due process but constituted grave administrative offenses.

Justice Secretary Menardo Guevarra ordered the National Bureau of Investigation (NBI) to probe into the circumstances of the leakage of the two Paudac resolutions.

The DOJ has since assumed jurisdiction of the investigation of the estafa cases.

TRLEI accused Okada of illegal disbursement of company funds amounting to $3.1 million supposedly for his consultancy fees and salaries during his one-month tenure as CEO through his accomplice Takahiro Usui, then TRLEI president. Said disbursement was not authorized by the TRLEI board.

The other estafa case involved the supply of $7-million light emitting diode (LED) fixtures to Okada Manila by Okada’s personal company, Aruze Philippines Manufacturing Inc (APMI), in conspiracy with his close associate, Kengo Takeda, who was the former Chief Technology Officer (CTO) of TRLEI. — MDM, GMA News