GungHo Online Entertainment revealed a major embezzlement scheme involving a former executive who siphoned off around 246 million yen ($1.67 million) through bogus work orders. The company uncovered this fraud during an internal investigation prompted by suspicions. The ex-employee faked outsourcing jobs to pocket payments, leading to a total loss of about $2.35 million. GungHo has fired the individual and is working with law enforcement on criminal charges. CEO Kazuki Morishita will also take a 30% salary cut to address the oversight, marking a serious commitment to improving internal controls.
Published on: 8/15/2025
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