Day-Lee Foods uncovers embezzlement scheme.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--March 25, 1997--Day-Lee Foods Inc., a subsidiary of Nippon Meat Packers Inc., has uncovered an embezzlement embezzlement, wrongful use, for one's own selfish ends, of the property of another when that property has been legally entrusted to one. Such an act was not larceny at common law because larceny was committed only when property was acquired by a "felonious taking," i. scheme involving an employee who diverted di·vert v. di·vert·ed, di·vert·ing, di·verts v.tr. 1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident. 2. money from company accounts for his personal use. The company's chief financial officer has admitted to the scheme and provided information to investigators who are helping the company identify and attempt to recover the lost assets. The amount is expected to exceed $80 million and could exceed $100 million. The losses are not expected to affect any operations of the parent company, which has a reserve of nearly $900 million, excluding capital, said Hiroji Okoso, president of Nippon Meat Packers. The embezzlement scheme came to light after the Internal Revenue Service issued a grand-jury subpoena subpoena (səpē`nə) [Lat.,=under penalty], in law, an order to a witness to appear before a court. A subpoena ad testificandum [Lat. to Day-Lee Foods that raised questions about the personal assets of the company's chief financial officer. The company then launched its own internal investigation, and the chief financial officer admitted to the scheme. Yasuyoshi Kato, who controlled all of Day-Lee's finances and accounting, is believed to have begun in 1990 to take funds from company accounts and convert them to his own use, including real estate and other investments. To cover the shortfall in the company accounts, he took loans in the company's name from California branch offices of Japanese or Japanese-owned banks. The loans were never entered on the company's books, and Kato made interest payments by taking out additional loans. The company believes that no other employees were involved. Kato, 39, has worked for Day-Lee Foods since 1982. The company is cooperating with authorities investigating the matter. It also is pursuing civil action to recover its lost assets. The civil action is being handled by attorney Kenneth N. Russak with the law firm of Pillsbury, Madison & Sutro LLP LLP - Lower Layer Protocol . The firm of Deloitte & Touche LLP, retained by the company's legal counsel, is helping determine how much money was diverted and help recover the assets. Day-Lee Foods, established in 1977, is based in Santa Fe Springs Santa Fe Springs, city (1990 pop. 15,520), Los Angeles co., SW Calif., inc. 1957. The city lies in an oil and natural gas region and has diversified manufacturing. , Calif., and has an annual revenue of about $485 million. The company processes and exports meats and agricultural products from the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to Japan. Its parent company, Nippon Meat Packers of Osaka, Japan, is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. on the Tokyo and Osaka stock exchanges. CONTACT: Fleishman-Hillard Inc. Paul Kradin 562/802-6804 or 213/489-8216 |
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