TOKYO, June 9 Shares of Universal Entertainment
Corp, a Japanese maker of slot machines, plunged as
much as 13 percent on Friday after the company said it was
investigating what it suspects was an improper transfer of funds
by its chairman to a company he controls.
The shares were down 7.8 percent at 0102 GMT.
In a statement on Universal's website issued under the name
of the company's president, Universal said it had found the
possibility of "fraudulent acts" related to a 2015 loan of
HK$135 million ($17.31 million) to an unnamed third party.
The statement says that all but HK$5 million of the loan was
subsequently transferred to Okada Holdings Limited, a company
controlled by Universal chairman and founder, Kazuo Okada, and
his son, and that the purpose of the loan was "to achieve
personal benefit for Chairman Okada."
(Reporting by Chang-Ran Kim; Editing by Chris Gallagher)