August 10, 2022

Toshiba Seems to Have Escaped SEC Penalty After Accounting Probe Ends

It was reported in March 2016 that the Securities and Exchange Commission and the Justice Department were investigating the “accounting problems” at Toshiba Corp.’s business units in the United States. Well, according to Reuters, the SEC has completed the investigation, and Toshiba is likely breathing a sigh of relief.

“We understand that all SEC investigations regarding our accounting have been completed,” a [Toshiba] spokesman told Reuters, adding that there was no penalty or censure.

Reuters could not reach the SEC for comment.

If true, that’s good news for Toshiba, because when it comes to its accounting and finances, there hasn’t been much good news the past three years.

Three former Toshiba presidents resigned in late 2015 after it was found that the electronics company overstated operating profits by more than $1.2 billion dating back to 2008, resulting in Toshiba revamping its board and increasing the number of outside directors.

In addition, the accounting scandal led the company to recognize huge cost overruns at its now-bankrupt U.S. nuclear unit Westinghouse and forced Toshiba to sell its prized memory chip unit for $18 billion, according to Reuters.

Toshiba was under investigation by the SEC and the Justice Department over allegations that it hid $1.3 billion in losses at its Westinghouse unit, Bloomberg News reported.

[Reuters]

Image: iStock/tbradford

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