The initial ruling on the damage suit filed by Universal Entertainment against Okada, who co-founded the business and served as its chairman until 2017, took place on February 13, 2020.
Universal Entertainment filed the suit after its special investigation committee found that Okada had committed three fraudulent acts. Okada launched a countersuit claiming that the investigation and disclosed information were defamatory, but the countersuit was dismissed.
Okada appealed the decision by the Tokyo Supreme Court, but the appeal was rejected on September 16.
The investigation revealed that between February and March 2015, Okada had Tiger Resort Asia (TRA) apply for an interest-free loan of HK$135m to purchase art and collect loan receivables on behalf of Okada Holdings Limited. TRA is a wholly-owned subsidiary of Universal Entertainment, operating the Okada Manilla resort.
Okada also instructed the accounting personnel at TRA to issue a cheque for HK$16m, which he signed and issued. Additionally, Okada facilitated a land purchase by UE Korea, a subsidiary of TRA, by changing the main business entity for the transaction to Okada Holdings Korea Co. Ltd. To fund the downpayment on the land, Okada borrowed USD$80m through Okada Holdings Korea using deposits from UE Korea as collateral.
Okada then billed UE Korea for USD$173.5m to disguise the borrowed amount plus interest and fees.
In April, TRA obtained online gaming approval from the Philippine Amusement and Gaming Corporation (PAGCOR). In June, Universal Entertainment restructured notes to improve cash flow.
