Sanyo Trading Co., Ltd. (TSE: 3176) said a former finance chief at its US subsidiary, Sanyo Corporation of America (SCOA), is suspected of siphoning company funds for personal use between June and September 2026. The estimated loss is $3.9 million, roughly ¥609mn at the yen's September 18, 2026 midpoint rate of ¥156.32 to the dollar.
The scheme surfaced in early September 2026, when SCOA staff cross-checked the subsidiary's bank deposit and withdrawal records against its accounting books, according to the disclosure. Over the four-month window, the suspected employee allegedly withdrew SCOA funds or moved them out of the subsidiary's accounts on multiple occasions.
Sanyo Trading's board resolved on September 18 to form a special investigation committee of outside lawyers with no special interest in the company or SCOA. The three-member panel is chaired by a law firm partner who is also a New York-qualified attorney and certified fraud examiner; a second partner, also a certified fraud examiner, and an of-counsel lawyer at the same firm complete the committee. Its mandate covers the specific facts of the suspected diversion, including timing, method and scope; whether similar problems exist elsewhere in the consolidated group; the root cause; and recommendations to prevent a repeat.
Sanyo Trading said it has not found facts implicating anyone beyond the suspected employee, but the scope and final amount remain under review. The company is still examining SCOA's financial statements, including whether any of the diverted funds can be recovered, and said the effect on consolidated earnings is undetermined. Its results for the fiscal year ending September 2026 are still scheduled for release on November 9, though the company said it will revise that date if the investigation requires it.
Sanyo Trading is considering legal action against the suspected employee, including a criminal complaint and a civil damages claim, and said it will coordinate with its auditor and relevant authorities as the committee's work proceeds.