The Securities and Exchange Surveillance Commission charges a surcharge of more than 81 million yen, saying that the IT company "Net One Systems" listed on the First Section of the Tokyo Stock Exchange has inflated profits totaling about 14 billion yen through so-called circular transactions. I advised the Financial Services Agency to order.
The target of the recommendation was "Net One Systems", an IT company listed on the First Section of the Tokyo Stock Exchange in Chiyoda-ku, Tokyo.
According to the Securities and Exchange Surveillance Commission, this company overstated sales in its financial results through so-called round-tripping transactions that repeat fictitious transactions between multiple companies.
The monitoring committee recommends that the Financial Services Agency order a surcharge of more than 81 million yen based on the Financial Instruments and Exchange Act, as the total profits overstated in the four years until the end of the year amount to about 14 billion yen. did.
According to the company, the round-tripping was led by a former employee who was disciplined and dismissed last year, and this month he instructed his business partner to charge the company in the name of a lie and cheated cash. He has been arrested by the Tokyo Metropolitan Police Department on suspicion of fraud.
In response to the recommendation, Net One Systems commented, "We deeply apologize for the inconvenience caused to all concerned parties. We will take measures to prevent recurrence and strive to restore trust as soon as possible."