Shares of Molex Inc. (MOLX) fell on Friday after the company said an individual working in Molex Japan’s finance group obtained close to $175 million in unauthorized loans in the company’s name from third-party lenders.
The company said that this individual used the funds obtained to “trade on margin in unauthorized accounts in Molex Japan’s name,” according to a statement from the electronic components-maker.
The company believes that the individual also “misappropriated” cash from Molex Japan that resulted in a near $15 million loss. The company said the individual admitted to forging documentation and arranging the transactions and the company said it has obtained legal representation to investigate the situation.
How could this happen. Wern't there any financial controls>>>
Molex has been a very trustworthy and conservative company for many years. What happened here was completely out of character for this organization. The SEC is currently looking into this. Once they get to the root, procedures need to change and people need to go to jail!!!