December 18, 2018

Japanese electronics and aviation company executives charged with books and records violations

The Securities and Exchange Commission has charged the former CEO, Paul Margis, and  the former CFO, Takeshi “Tyrone” Uonaga, of Panasonic Avionics Corp., the US subsidiary of Panasonic Corp., with knowingly violating the books and records and internal accounting controls provisions of Section 13(b) of the Securities Exchange Act of 1934.  According to the SEC, Margis used a third party to pay consultants who did little, if any, work — including a government official who allegedly received $875,000 — and then falsely recorded the payments.  The SEC also alleged that Uonaga caused Panasonic Corp. to record $82 million in revenue improperly.  The two executives consented to the SEC’s orders without admitting or denying the allegations. Margis has been ordered to pay a penalty of $75,000, and has been suspended from practicing before the SEC as an accountant;  Uonaga has been ordered to pay a penalty of $50,000, and may apply for reinstatement in five years.

SEC Press release | SEC Order (Margis) | SEC Order (Uonaga)