Overview
- An internal probe found 106 employees took about ¥30.8 billion from 498 clients through unapproved investments and other schemes, part of roughly ¥31.4 billion extracted by more than 100 staff overall.
- Prudential reported its findings on Jan. 16 to Japan’s Financial Services Agency and said the CEO will step down on Feb. 1 with Hiromitsu Tokumaru named as successor.
- Employees have repaid about ¥7.9 billion, leaving roughly ¥22.9 billion outstanding, and the company has not decided whether it will compensate affected customers.
- Disclosed examples include a Kumamoto ex-employee falsely pitching “employee-only” shares and a Shiodome ex-employee using company-branded forms to solicit funds.
- The review followed a June 2024 arrest of a former employee and expanded in August 2024, with Prudential acknowledging that performance-linked pay fostered behavioral risk and weak on-the-ground controls.