Ex-brokers suspected in Olympus buyouts

Japan's securities watchdog is to question several former brokerage employees over their suspected involvement in acquisitions Olympus allegedly made to cover up losses.

Sources say a financial advisory company set up in the United States mediated a deal for Olympus to buy a British medical equipment maker in 2008. The advisory firm was founded in 1997 by a former employee of a major Japanese brokerage house.

Olympus paid 687 million dollars in mediation fees -- far higher than in ordinary deals.

The sources also say that before the buyout, a company auditor from Olympus frequently visited an affiliated firm of the US consulting company in Japan.
The affiliated company was also headed by a former employee of the brokerage.

The sources say a deal for Olympus to buy three Japanese firms was proposed by another investment consultant. He was also once a senior official at the brokerage.

The consultant is said to have recommended the deals to former Olympus President Tsuyoshi Kikukawa and other executives, who later approved the proposal. The consultant was in charge of the Olympus account when he worked for the major brokerage.

The Securities and Exchange Surveillance Commission is inspecting the company's books to urge it to swiftly announce corrected financial reports by December 14th. Olympus is to be delisted from the Tokyo Stock Exchange unless it releases its quarterly settlement of accounts by that date.

Friday, November 11, 2011 20:53 +0900 (JST)