Large ARM Investor May be Hit with Fine

Published on:
19 December 2006 at 10:03 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00008011-large-arm-investor-may-be-hit-with-fine/

Nikko Cordial Corp., a majority owner of Cabot Financial, one of the largest debt purchaser/collectors in the UK, found itself on the wrong end of a 500 million yen fine (US$4.2 million) for falsifying its fiscal 2004 financial reports.

The SESC said the nation’s leading brokerage padded its consolidated net profit by 11.6 billion yen (US$98.2 million) and its pretax profit by 18.7 billion yen (US$158.4 million) through illegal use of its affiliated companies.

"We apologize for causing trouble to our shareholders and investors," Nikko Cordial Executive Vice President Hiroaki Sugioka told a news conference in Tokyo. "We will do our utmost to improve our internal control to regain public trust."