General Contractor Yamaura Faces Fines for False Financial Statements
General contractor Yamaura is facing some financial trouble for allegedly releasing false financial statements. The Securities and Exchange Surveillance Commission has suggested to the Financial Services Agency that Yamaura be fined around ¥18 million (that’s about $120,000) for this issue. The company’s former accountant, Hiroyuki Murata, is suspected of cooking the books to cover up an unauthorized withdrawal of about ¥2.6 billion from a subsidiary over a period from August 2020 to February 2023, as reported by the commission.
Murata is now on trial for corporate embezzlement. Yamaura, based in Komagane, Nagano Prefecture, responded to the commission’s recommendation by stating, “We take seriously the recommendation and will consider how to respond to a formal notice from the agency.”
The troubles for Yamaura began when discrepancies of about ¥1 billion were flagged by the accounting auditor of the company in May 2023, related to bank deposits by Yamaura’s Tokyo-based subsidiary, Yamaura Kikakukaihatsu. The parent company had previously reported ¥1 billion in accounts receivable in its earnings report, but this turned out to be inaccurate.
An investigation revealed that Murata, who was responsible for financial statements at Yamaura and accounting at the subsidiary, had allegedly withdrawn more than ¥2.5 billion illegally by 2023. As a result, Yamaura had to revise financial results for the past three years, starting from fiscal 2021.
Murata and his son, Toshiki, have been arrested and charged with embezzling around ¥900 million. The funds allegedly went towards paying off credit card debt and loans related to the Rizin mixed martial arts events.
These financial troubles highlight the importance of transparent and accurate financial reporting for all companies, no matter how big or small. It serves as a reminder that investors and stakeholders rely on reliable financial information to make informed decisions.
