Japan Display (JDI) discovered last year that a former employee had fraudulently remitted money to companies that had no actual transactions with JDI and had illegally acquired revenue stamps.

The display maker said that from July 2014 to October 2018, a former employee of JDI's administrative division committed fraud by conducting transactions with companies that did not exist and had no business relationship with JDI. The employee was fraudulently acquiring company funds by transferring money falsely labelled as, for example, outsourcing expenses to these fictitious companies. The employee also acquired company funds by improperly obtaining revenue stamps, falsely claiming that the stamps would be affixed to contracts and other documents.

JDI said that the total amount of damage to the company amounted to approximately JPY 578 million ($5.321.646).

Following the discovery of the incident, JDI formed an internal investigation committee, including external experts (lawyers and certified public accountants), and conducted an investigation. The company dismissed the employee on December 28, 2018 and filed a criminal lawsuit.

"We sincerely regret this unfortunate incident and apologize for any anxiety caused to our shareholders, business partners and other stakeholders," Japan Display said.