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General Contractor Yamaura To Be Fined For False Financial Statements

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The Securities and Exchange Surveillance Commission is going to recommend that the Financial Services Agency impose a fine on general contractor Yamaura for releasing false financial statements, it was learned Tuesday.

In May 2023, the accounting auditor of the Komagane, Nagano Prefecture-based company listed on the Tokyo Stock Exchange's Prime section pointed to a difference of about ¥1 billion between the actual and booked balances of bank deposits by its Tokyo-based subsidiary, Yamaura Kikakukaihatsu.

The parent, in its consolidated earnings report for fiscal 2022 through March 2023, logged ¥1 billion in accounts receivable, which later proved to be a misstatement.

A third-party investigation panel found that Hiroyuki Murata, 64, who was in charge of preparing financial statements at Yamaura and accounting at the subsidiary in question, had illegally withdrawn more than ¥2.5 billion by 2023. In response, Yamaura revised financial results for the three years from fiscal 2021.

The securities watchdog decided to make the recommendation on the grounds that Yamaura's release of financial statements containing false information amounts to a violation of the financial instruments and exchange law, people familiar with the matter said.

Murata has been arrested and indicted on suspicion of embezzling about ¥900 million in total together with his 35-year-old son, Toshiki. The money is believed to have been used for credit card payments and loans to the operator of Rizin mixed martial arts events.
 
 

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