Former Employee Retaliates in Universal Entertainment Scandal
Kazuo Okada, the prosperous proprietor of Universal Entertainment Corp., a Japanese manufacturer of gaming devices that possesses a 21% stake in Wynn Resorts, has been involved in a criminal complaint filed by a former worker in relation to a lengthy bribery scandal, leading to a baffling legal quarrel.
The accusation revolves around $40 million that the complainant, Takafumi Nakano, asserts he was instructed to provide as bribes to secure property ownership and tax advantages for the $2 billion casino Universal Entertainment is constructing in Manila Bay, the Philippines.
Nakano alleges that he was instructed to pay a significant portion of this sum in 2010 to Rodolfo Soriano, a consultant with close ties to Efraim Genuino, who served as the head of the Philippine gaming regulatory agency at the time. Nakano has made the same assertion previously in a civil defamation lawsuit against Okada. Okada, in response, alleges that his former worker, together with two others, illegally transferred the money without authorization. Despite their contradictory statements, they all contend they were obeying Okada's orders.
Investigations and Allegations
This allegation has already led to probes by the FBI, the Nevada Gaming Board, and the Philippine government. Should these authorities find substantial evidence of corruption, Universal could endure prosecution in both the U.S. and the Philippines. The company, located in Tokyo, possesses licenses to manufacture and distribute casino equipment in Nevada, Mississippi, and New Jersey. If found guilty, the organization could struggle to conduct business in these states.
Reports indicate that the new complaint was forwarded to the Tokyo District Public Prosecutor's Office last week. In it, Nakano wrote: "The only possibility is that the $40 million was paid as bribes to Genuino or to other public officials." He also noted that following the bribery allegations, the Philippine government relaxed its regulations on foreigners operating casinos and authorized Universal to function as part of the Philippine Economic Zone Authority – a government body that manages incentives for businesses in the country.
Conflicting Claims
Last month, Reuters reported that one of Universal's legal representatives, Yuki Arai, proposed Nakano accept compensation to abandon all his claims and to refrain from working with investigative agencies. Universal denies this and has commenced legal proceedings against Reuters for defamation. Universal insists that the settlement offer was suggested by Nakano's lawyer, who sought millions of dollars. Nakano's party denies this, and Reuters continues to uphold its declaration.
The Tokyo District Public Prosecutor's Office has not revealed whether it intends to instigate its own investigation. However, Japan was recently reproached by the Organization for Economic Co-operation and Development (OECD) for laxly enforcing its own laws against Japanese companies bribing foreign officials. Nakano has requested that the Prosecutor's Office undertake an extensive examination. While Universal Entertainment has initiated its own independent investigation, it has not yet made its findings public.
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