NYT: Executives, bankers arrested in Olympus fraud

The New York Times is reporting three former Olympus Corp. executives of were arrested today for their role in a $1.7 billion accounting fraud, one of Japan’s biggest corporate scandals.

Tokyo prosecutors arrested ex-President Tsuyoshi Kikukawa, former Executive Vice President Hisashi Mori and former auditor Hideo Yamada on suspicion of violating the Financial Instruments and Exchange Law, officials said in a statement. Also arrested were four others, including former bankers Akio Nakagawa and Nobumasa Yokoo, suspected of helping the executives hide huge investment losses through complex M-and-A deals.