A subsidiary of Japanese gaming machine manufacturer Universal Entertainment Corp. confirmed on Thursday that it has filed a damages lawsuit against Japanese gambling tycoon Kazuo Okada.
Tiger Resort Asia Ltd. said in a filingto the JASDAQ Securities Exchange, that it is seeking damages of HK$136.05 million from Mr. Okada for misappropriating funds from the company back in 2015. Th Japanese businessman was a member of the company’s board at the time.
Tiger Resort Asia has brought the matter to the High Court of the Hong Kong Special Administrative Region on December 27, 2017, as noted in its JASDAQ filing. The announcement about its lawsuit emerged precisely a month after its parent company Universal Entertainment itself filed a damages lawsuit against Mr. Okada for “fraudulent acts” while serving as Chairman of the Japanese company, known for manufacturing pachinko, slot machines, and other gambling devices. Here it is also important to note that it was Mr. Okada who founded Universal Entertainment’s predecessor in the late 1960s.
Tiger Resort Asia, through a subsidiary of its own and a local partnership, operates the multi-billion Okada Manila casino resort in the Philippine capital. Back in June, when news about Mr. Okada’s allegedly inappropriate transfer of funds broke, the company’s subsidiary Tiger Resort Leisure and Entertainment ousted the businessman from his post of Board Chairman.
Reasons behind the Damages Lawsuit
Tiger Resort Asia explained that its decision to file a damages suit was urged by two instances of Mr. Okada being negligent to his duty as a board member. The first case involved Mr. Okada transferring the amount of HK$135 million in the period between February and March 2015 as a loan from Tiger Resort Asia to Goldluck Tech Limited, which was represented by a person called Li Jian at the time.
It was found out that Mr. Okada did not request collateral and did not impose any interest back then. Funds were refunded to Okada Holdings, a company owned by Mr. Okada and other members of the Okada family. As stated in Tiger Resort Asia’s filing to JASDAQ, the amount of HK$120.05 million is yet to be recovered.
The second case occurred in May 2015 when Mr. Okada was found to have ordered the preparation of a bearer check worth HK$16 million from Tiger Resort Asia, signed that check, and brought it out. It was further revealed that the gambling mogul sought personal gain.
As a result, Mr. Okada, Okada Holdings, Li Jian, and Goldluck Tech Ltd. (which is based on the British Virgin Islands, were brought to court to become defendants in Tiger Resort Asia’s damages suit from December 27. The latter company said that it would disclose all the necessary details in relation to the lawsuit when such details become available and in due manner.
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