Japan’s securities watchdog to recommend $59.8 million fine for Toshiba: source

TOKYO Japan’s securities watchdog will recommend that Toshiba Corp should be fined 7.37 billion yen ($59.84 million) for accounting violations, a person familiar with the process told Reuters on Saturday.

The source said the Securities and Exchange Surveillance Commission will make the recommendation, which would be a record fine for accounting violations, to the Financial Services Agency on Monday.

Toshiba, whose business spans household electronics to nuclear power, has said it inflated profits by about 155 billion yen ($1.26 billion) in a period spanning about seven years.

A third-party probe set up by Toshiba to investigate its accounting practices was given a failing grade late last month by half of a group of influential lawyers, who said it was not sufficiently independent and did not examine a key division.

($1 = 123.1600 yen)

(Writing by Abhirup Roy in Bengaluru and Shinichi Saoshiro in Tokyo- Editing by Simon Cameron-Moore)