Mikimoto Ginza Store Falsely Reported Sales

June 20, 2006

Mikimoto Ginza Store Falsely Reported Sales

K. Mikimoto & Co., the world-renowned manufacturer and retailer of cultured pearl jewelry, discovered that its flagship store in Tokyo's Ginza shopping district reported 1.3 billion yen ($113 million) in falsified sales results between September 1999 and August 2004, according to Japanese newspaper The Daily Yomiuri.

The discovery was made after an internal investigation, which also revealed that jewelry inventory worth tens of millions of yen disappeared during the same time period.

The company said it has punished the 35 employees of the retail location as well as its 13 company executives with reductions in salary and other disciplinary measures, and that it is considering filing criminal embezzlement charges against employees expected of being involved in the scheme.

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