Toshiba's CEO Bails Over $1.2B Scandal
Investigation finds executives inflated profits, hid irregularities
By Arden Dier,  Newser Staff
Posted Jul 21, 2015 7:41 AM CDT
Toshiba Corp. CEO Hisao Tanaka, center, bows with chairman Tadashi Muromachi, left, and executive director Keizo Maeda during a press conference to announce his resignation in Tokyo, Tuesday, July 21,...   (AP Photo/Shizuo Kambayashi)
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(Newser) – Nine top officials at Toshiba, including CEO Hisao Tanaka, have resigned to take blame for Japan's biggest accounting scandal since 2011, report the AP and Bloomberg. Toshiba began probing accounting anomalies two months ago and says it must now correct earnings by $1.2 billion. An investigation found executives inflated profits to meet unrealistic targets over six years. Though the irregularities were "skillfully" hidden, no charges have been laid. "For the company to rebuild there needs to be a renewal of the management structure," says Tanaka, to be replaced by Chairman Masashi Muromachi.