Nuclear

Toshiba Faces US Accounting Probe of Nuclear Business Unit Westinghouse

Toshiba Faces US Accounting Probe of Nuclear Business Unit Westinghouse

Toshiba Corp. is reportedly under investigation by the U.S. government over allegations of fraud in its Pennsylvania-based Westinghouse Electric nuclear business unit.

READ | Investigation
 
The U.S. Justice Department and the Securities and Exchange Commission are looking into whether Toshiba hid $1.3 billion in losses, multiple news agencies have reported. Japan’s securities regulator found Toshiba had falsified financial statements and documents involving its issuance of corporate bonds. Toshiba published an internal review in 2015 that said management went along with falsifying the documents that said Westinghouse Electric had made more than $1 billion in profits since 2008.  The unit had, in fact, lost $1.3 billion mostly due to a downturn in business following the 2011 Fukushima disaster.
 
Japanese regulators fined the company $62.1 million and fined its former auditor, Ernst & Young ShinNihon LLC $17.4 million and barred it from accepting new business for three months, according to Bloomberg. Toshiba’s President and CEO Hisao Tanaka stepped down in August 2015.
 
Toshiba bought Westinghouse Electric in 2006 for $5.4 billion.
 
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