MEA CULPA: The head of a Japanese investment firm accused of losing more than $1 billion in clients' pension funds apologized Tuesday, saying he intends to repay losses that were concealed for years.
THE CHARGE: Japan's Securities and Exchange Surveillance Commission alleges that AIJ Investment Advisors lost 109.2 billion yen ($1.3 billion) in pension funds in derivatives trading overseen by AIJ President Kazuhiko Asakawa. Much of the money came from small pension funds which may go bankrupt due to the losses.
THE MONEY: AIJ claimed to have 209 billion yen ($2.5 billion) in net assets as of the end of March 2011, when it really had only 25.1 billion yen ($303.5 million). The SESC said it found only 6 billion yen ($72.5 million) in funds in AIJ's bank account.