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NEC employees caught up in kickback, fake order scandal

Evan Blass

So apparently BenQ and Siemens aren't the only companies whose employees don't like to play by the rules, as tax investigators looking into NEC's shady financials have found that select personnel were involved in schemes that racked up 2.2 billion yen ($18 million) in fake orders and earned them 500 million yen ($4.1 million) in kickbacks. The charges come on top of already shady reporting by the Japanese company, which had to restate its fiscal 2006 earnings three times already and still risks being delisted from NASDAQ save for intervention from the exchange's Hearings Review Council. For its part, NEC offered the typical spiel about regretful actions and possible criminal charges -- which actually seems to have done some good, as the company's domestic shares rose slightly following the news.

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