|July 3, 2015:
Filing criminal charges against Ishiyama Gateway Holdings Inc. and its directors for submission of an annual securities report containing false disclosure statements
The SESC filed charges against the suspected company and two suspects with the Tokyo District Public Prosecutor’s Office for violations of the Financial Instruments and Exchange Act. The suspected company, Ishiyama Gateway Holdings Inc., listed its shares on JASDAQ of Tokyo Stock Exchange, Inc. Suspect A was the representative director, and Suspect B was a managing director along with the representative director of the consolidated subsidiary of the suspected company.
Suspects A and B in conspiracy submitted the suspected company’s annual securities report, which contained false disclosure statements, for the fiscal year ended June 2014. Although net sales were actually 3,124,711,000 yen, ordinary loss was 352,505,000 yen, and loss before income taxes and minority interests was 349,563,000 yen, the submitted annual securities report contained false statements in a consolidated profit and loss statement showing net sales of 4,126,166,000 yen, ordinary profit of 38,694,000 yen, and income before income taxes and minority interests of 41,636,000 yen due to abusing methods such as recording fictitious sales.