Toshiba Tec Employee’s Scheme Costs Company $1.3 Million

Toshiba Tec of Japan reported today that it’s discovered misconduct by an employee involving the resale of fictitious orders.

The firm said that one employee at its domestic branch in Japan recorded fictitious orders to receive goods for personal benefit, and subsequently resold them. This misconduct was revealed through an internal investigation following the employee’s confession during the accounts receivable verification process.

The damage caused by the misconduct amounts to approximately 200 million yen ($1.3 million) incurred during the company’s fiscal year 2017 to fiscal-year 2024.

The firm says the financial impact of this is minor, and that the necessary adjustments have already been incorporated into its financial results for the third quarter of its fiscal year ending on March 31, 2025. There is no change to the earnings forecast for the current fiscal year as previously announced.

Measures to Prevent Recurrence

Toshiba Tec said it has “taken strict action against the employee” involved in accordance with its internal policies. It noted that it takes the incident very seriously and is committed to strengthening its internal control systems, including without limitation, reviewing business processes and enhancing compliance education, to prevent any recurrence.