Former Daio Paper chairman hit with additional 2.33B yen in charges for damages to three subsidiaries, now accused of causing total 5.53B yen in damages by Tokyo prosecutors

LOS ANGELES , December 23, 2011 () – Former Daio Paper Corp. Chairman Mototaka Ikawa was hit with charges of an additional 2.23 billion yen (US$28.5 million) by Tokyo prosecutors for damages caused to three subsidiaries, including tissue manufacturer Elleair Paper Tech Co., reported The Japan Times on Dec. 23.

The charges now stand at a total of 5.53 billion yen worth of damages for aggravated breach of trust after the chairman borrowed money from four Daio group subsidiaries.

According to the most recent indictment, Ikawa requested that the companies transfer funds into his personal bank account.

The ex-chairman has acknowledged using the funds on gambling in casinos, according to sources, reported the Japan Times.

The primary source of this article is The Japan Times, Tokyo, Japan, on Dec. 23, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.