On January 24, 2018, a Sekisui House Independent Committee (“IC”) issued its Investigation Report finding Toshinori Abe, Shiro Inagaki, Yoshihiro Nakai, and Takashi Uchida (the “Top Four”) responsible for the Gotanda Land Scandal.
The Scandal raised many money laundering red flags and resulted in the Sekisui House’s loss of 5.55 billion yen ($51.9 million) and raises the continuing question -- “how could the Top Four and a sophisticated home builder be so readily swindled in a Tokyo land transaction”?
As part of the IC, Isami Wada and the IC moved to fire the Top Four, but the Top Four instead had the Incumbent Board oust Wada who was then Chairman and focused on international business.
In a materially misleading press release, the Top Four on February 20, 2018 asserted that Wada had voluntarily retired due to his age; the Incumbent Board has permitted this false disclosure to persist in 2020 as can be seen through a reply to a recent shareholder inquiry.
In July 2018, shareholders sued Abe and sought to have the Investigation Report made public; the Top Four fought hard to conceal and not publish the Report, but in November 2019 the Report was released by an Osaka Court order. The Top Four then had the Report released with information redacted.
On February 17, 2020, our Director Slate announced that it would seek election with a promise to bring full transparency to the Investigation Report, aggressively seek recovery of the lost funds and establish good corporate governance and other salutary measures to Sekisui House to benefit all stakeholders.