The highest court in Tokyo has dismissed Kazuo Okada’s challenge to a legal action brought by Universal Entertainment, the gambling company headquartered in the Philippines. The court determined that Okada did not meet his responsibilities as a leader of the company.
The initial legal proceedings, conducted in February 2020, supported Universal Entertainment in their case against Okada, who was a co-founder and served as the head of the company until 2017.
Universal Entertainment initiated the legal action after the company’s special investigative group concluded that Okada was responsible for three dishonest actions.
Okada filed a counter-claim, arguing that the investigation and specific details revealed by the company during the process were intended to damage his reputation. However, the counter-claim was dismissed, and Okada challenged the decision of the Tokyo High Court. The court rejected the challenge on September 16th.
The investigation discovered that between February and March 2015, Okada had Tiger Resort Asia (TRA) request a HK$135 million (US$17.3 million/£12.6 million/€14.8 million) loan without interest from an unidentified global company.
These funds were utilized to finance Okada’s artistic acquisitions, and Okada Holdings Ltd. to recuperate outstanding loans from external entities.
Universal Entertainment’s fully owned subsidiary, TRA, manages the Okada Manila resort.
Okada also requested that TRA’s financial administrator issue a check valued at HK$16 million, which was endorsed and released by Okada.
Moreover, Okada influenced the land procurement of UE Korea, a wholly owned subsidiary of TRA. During the negotiation of the acquisition, Okada modified the primary business entity from UE Korea to Okada Holdings Korea Ltd.
To accumulate the land down payment, Okada obtained a loan of $80 million through Okada Holdings Korea, utilizing UE Korea’s deposits as security.
Afterwards, Okada directed OHL Korea to issue a bill of $173.5 million to UE Korea to conceal the loan amount, along with interest and charges.
TRA received an online gaming permit from the Philippine Amusement and Gaming Corporation (PAGCOR) in April.
In June, Universal Entertainment sought to secure financial flexibility through a reorganization of its notes to enhance its cash flow.
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