Fraud committed by a former employee

April 16, 2014

It was recently discovered that one of our former employees had committed a serious fraud at one of our overseas affiliates (hereinafter “the Affiliate”). It is regrettable that such a situation was allowed to take place at one of our affiliates.
We would like to send our sincere apologies to all of our stakeholders for any inconvenience.

The incident

The employee in question unlawfully made multiple fund transfers from the Affiliate’s bank account into their personal account. Our investigation, conducted in conjunction with an external fraud expert, uncovered that the monies transferred and embezzled amounted to approximately 700 million yen.

Our response

After the full details of the incident have come to light as a result of the investigation, the employee in question was dismissed on 27 March 2014 for fraud. We also took disciplinary actions on others inside the company who are responsible for allowing the incident to take place.
Further, we plan to press criminal charges against the former employee.

ITOCHU Corporation takes this incident extremely seriously. We will make every effort to prevent similar incidents from happening in the future.