Machinery Execs Get 3 Years Over Accounting Fraud

The former president and executive director of FOI Corp. falsified a financial statement to mislead investors when it went public.

SAITAMA, Japan, Feb. 29 (Kyodo) — The Saitama District Court on Wednesday sentenced both the president and an executive director of machinery maker FOI Corp. to three years in prison for falsifying a financial statement to mislead investors when it went public in 2009 on the Tokyo bourse's start-up company market.

The president of FOI, Yutaka Okumura, 61, and executive director Masakazu Uehata, 47, submitted to the Kanto Local Finance Bureau a false securities registration statement for its listing on the Tokyo Stock Exchange's Mothers market in November 2009, according to the ruling.

The statement showed a bogus sales figure of some 11.8 billion yen against actual sales of about 319 million yen at the builder of chip-making machines in breach of the Financial Instruments and Exchange Law, the ruling said.

FOI was delisted from the Mothers market on June 15, 2010, only seven months after its listing.

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