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by Dave Gradijan

NEC: Employee Faked Millions in Sales

News
Mar 23, 20061 min
CSO and CISOData and Information Security

An NEC Engineering employee falsified sales over a three-year period that resulted in inflated sales of 36.3 billion yen, or about US$309.5 million, for parent company NEC, the company said.

The employee falsified sales documents and embezzled money from March 2002 to December 2005, according to a statement released by NEC.

Based on investigations so far, NEC believes only one employee was involved in the scandal.

The company said it would file criminal action against the employee, amend and restate its consolidated financial statements for past fiscal years in accordance with U.S. GAAP (generally accepted accounting practices) as well as implement new structure and policies to prevent future fraudulent actions.

-Shelley Solheim, IDG News Service

For related CSO content, read Anatomy of a Fraud.

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