Bloomberg reported today (2/16/12) that three former executives at Olympus, including former chairman Tsuyoshi Kikukawa, and four others were arrested for suspected violation of the Financial Instruments and Exchange Act.

The Japanese camera and medical equipment maker is facing shareholder lawsuits and may be subject to further criminal investigation after admitting to a 13-year cover-up, Bloomberg said.

Kikukawa, who headed Olympus for ten years until last year, Hideo Yamada, who led the investment unit since the 1980s and later became an auditing officer, and former executive vice president Hisashi Mori concealed losses, booked overstated goodwill and falsified financial statements, the prosecutors said in a statement, Bloomberg noted.

To read the full Bloomberg story: click here.

Previously on monitordaily: Olympus Ex-CEO Plans Book on Scandal, published February 9, 2012

Olympus Accounting Fraud Threatens Company’s Survival, published December 21, 2011