Former exec of Tobu Railway subsidiary in embezzlement probe

Aug 05, 2017 | News On Japan

Aug 05, 2017 (tokyoreporter.com) - Tokyo-based rail operator Tobu Railway has announced that the results of an internal investigation has revealed an alleged embezzlement of more than 100 million yen over a 24-year period by a former executive of a subsidiary, reports Fuji News Network

Between 1993 and June, the former accounting chief (59) at Tobu Hotel Management, alleged misappropriated a total of 126.3 million yen, Tobu Railway said on July 28.

Over a 16-year period until 2009, the former executive diverted between 50,000 and 60,000 yen to himself through payments to customers that did not exist. After changing positions in 2009, the former executive either withdrew cash or made transfers from an account of another subsidiary on 119 occasions, according to Jiji Press (July 28).

The former executive used the funds for pachinko and to repay debts, Tobu Railway said.

Tobu Hotel Management also revealed that a 45-year-old male employee was behind a separate embezzlement of 4.5 million yen.

Resignation letter

On June 21, the former executive resigned from Tobu Hotel Management, which operates the Tobu Hotel chain, upon which time he confessed to the embezzlement in his resignation letter.

"Tobu Hotel Management and other group companies will further internal management to prevent a recurrence," Tobu Railway said.

The company is now considering legal action.

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