Toshiba does not look like it is going to have a decent start in 2017 as the Japanese multinational conglomerate experiences a more than five percent shares fell in early trade on Wednesday. This happened after media reported that the security watchdog suspects that Toshiba has been lying about their profits over the past three years amounting up to $340 million.
Reuters reports that these revelations could cost the company a lot, the new findings add to the accounting troubles swirling around Toshiba. Only last week the company owned up to the fact that it might be facing a multi-billion dollar loss over its nuclear business in the United States.
The Securities and Exchange Surveillance Commission who had earlier declined to look further into the situation due to lack of evidence will now present allegations of accounting fraud to prosecutors, after the Tokyo markets close, Asahi Shimbun newspaper reported on Tuesday.
The newspaper also reported that Toshiba has been reporting profit gains in its computers during the financial years of 2012-2014 even when the section had not generated any profits. Reportedly both the CEOs and a chairman of the company during these years were involved in the alleged cheating.
The investigation would lead only to more bad news for the company as it could possibly end up with charging the company and its former leaders with criminal chargers.