Regulators to seek penalty on Toshiba for false accounting: Nikkei

Japan’s financial watchdog plans to seek a financial penalty on Toshiba Corp, currently being investigated by an independent committee over accounting irregularities, the Nikkei reported on Saturday. The Securities and Exchange Surveillance Commission (SESC) believes the company falsified financial statements and will recommend as early as September that the Financial Services Agency impose a fine, the business daily said, citing sources. A source familiar with the matter told Reuters that regulators will begin studying the case to weigh potential penalties after the committee announces its findings on Monday. An SESC spokesman declined to comment, while Toshiba officials were not immediately available for comment. A separate source familiar with the matter said on Friday that the committee’s report was likely to conclude that top executives – including CEO Hisao Tanaka, and former company presidents Norio Sasaki and Atsutoshi Nishida – had been aware of delays to the booking of losses. Toshiba expects to take up to $3 billion in charges related to six years of improper accounting. Reuters