NEC Employees Implicated In Fake Order Scam

Ten employees have been caught faking orders in order to receive kickbacks, Japanese electronics maker NEC disclosed on Tuesday. In total, the ten made over $4.1 million on $18 million in forged orders, however NEC said that it would not affect earnings. Criminal proceedings will likely be pursued against those involved. "It is extremely regrettable that these illegal trades have occurred and we deeply apologize to all the people that have been affected," NEC said in a statement.

This news comes as the latest in a string of bad news for investors. In 2006, NEC restated its earnings three times, due to inflated sales figures. It has also missed deadlines with the Securities and Exchange Commission to file required reports, and is facing the threat of a delisting from the NASDAQ.