In the world of finance, not every President and CEO is good for the company. In fact there are a number of fraud cases that appear before a magistrate that detail how an officer has committed multiple counts of fraud or illegal transfer of funds, victimizing the company, it’s clients, or both.
According to the San Jose Federal Court an indictment was handed down against Misako Yamaguchi on Thursday, August 6. Yamaguchi was the President and CEO of Scientific Lab Equipment, also known as Yamato Scientific America, located in Santa Clara. Yamato Scientific is known for its sale and manufacturing of electric bicycles.
She is facing one felony count of Mail Fraud under 18 USC §1341. Yamaguchi is also being charged under 18 USC §981(a)(1)(C), which begins a civil procedure in order to try and recover goods, money, and/or products taken during the committed crime. Yamaguchi is also being prosecuted under 28 USC 2461(C), forfeiture, in which a known amount of assets which had been stolen and or taken without permission, is recouped and returned to the owner as much as possible to make the victim whole.
Yamaguchi worked with her son Y.T., who ran a similar company owned by the two of them called Green Bike Lab. During an agreement with Yamato Scientific, electric bikes could be sold to buyers at a discount from 15% – 25%. The reduced price was given to help entice a higher sale increase for Yamato Scientific America. However, having her own business, Yamaguchi had a phone line specifically set up to refer all sales to Green Bike Lab, and Yamaguchi discounted the sale by 40%, specifically setting up the account to pay directly to Green Bike Lab.
It was found that during Feb of 2013 – April of 2014 Yamaguchi had fraudulently charged Yamato Scientific America hundreds of thousands of dollars. According to court records, “Yamaguchi was told to sell bikes for Yamato Scientific America only.”
It is believed that she fraudulently paid herself by mailing a check to Green Bike Lab, and by sending a check for $23,230.81 to her personal account as a purchaser Sierra Photo Express. The company found that she was stealing hundreds of thousands of dollars worth of goods, while falsifying a 40% debate given under false pretenses.
