In Japan and a district court has reportedly ordered local casino magnate Kazuo Okada (pictured) to pay some ¥21.3 million ($191,500) in compensation to the firm he once headed, international gaming conglomerate Universal Entertainment Corporation.
According to a report from Inside Asian Gaming, the ruling from the Tokyo District Court comes almost two years after Universal Entertainment Corporation sued its former 77-year-old boss over three cases of alleged fraud dating back to 2014 that were said to have been worth almost $100 million.
Deceptive dealings:
According to the source, Okada was sacked as Chairman of Tokyo-headquartered Universal Entertainment Corporation in June of 2017 after an internal investigation turned up claims that he had agreed to loan some $17.37 million in interest-free company funds to a third party for his own personal use. The same examination later purportedly discovered that the septuagenarian had also procured an unauthorized check worth approximately $2.05 million from his firm’s Tiger Resort Asia Limited subsidiary.
Moniker malevolence:
Finally, Universal Entertainment Corporation had reportedly alleged in the Japanese court that Okada had changed the name of a firm purchasing land for a casino resort in South Korea from Tiger Resort Asia Limited subordinate Universal Entertainment Korea to his own Okada Holdings Korea Company Limited vehicle. It claimed that this latter enterprise subsequently borrowed some $80 million to complete the property deal using the former’s holdings as collateral before charging a management consultancy fee worth about $173,562, which had been roughly equivalent to the interest on the earlier advance.
Additional arrears:
Tiger Resort Asia is the majority shareholder of Manila-listed Tiger Resort Leisure and Entertainment Incorporated, which is responsible for the 993-room Okada Manila development in the Philippines. It furthermore detailed that the ruling from the Tokyo District Court contains provisions that require Okada to hand over 5% interest payments back-dated to December of 2017 and satisfy all litigation costs.
Reportedly read a statement from Universal Entertainment Corporation…
“The judgment acknowledges that the fraudulent acts were conducted under the order of Mr Okada as well as that Mr Okada breached both his duty of care as a good manager and his fiduciary duty of loyalty as a director of the company.”