Japanese gaming mogul Kazuo Okada and an associate has been arrested by Hong Kong’s anti-corruption watchdog, according to a filing from Universal Entertainment Corporation.
According to local media reports, Okada and his associate, Li Jian, have been held by the Hong Kong Independent Commission Against Corruption (ICAC) for conspiracy to defraud Okada Holdings of US$19.7 million, based on a complaint filed by Tiger Resort Asia.
Tiger Resort Asia had accused Okada of releasing corporate funds as loans to Li Jian’s Goldluck Tech without demanding collateral and interest between February and March 2015.
Okada then allegedly collected the loan payment for his own personal use and paid Li for his involvement in the scheme.
It is understood that Mr. Okada is currently released subject to bail conditions imposed on him by the ICAC.
Okada is a former chairman of Universal Entertainment, but resigned from the post on June 29, 2017.
Earlier this year, Universal Entertainment filed civil and criminal complaints against Okada claiming its patent rights were violated and sought compensation.
The gaming mogul is also under investigation from the Philippines Department of Justice for US$10 million fraud charges filed against him.
Universal Entertainment said it will render its full support and assistance to the ICAC and other law enforcement authorities should the situation require. (AGB)