GungHo Online Entertainment Dismisses Former Senior Executive for Embezzlement With Plans to File Criminal Charges – News

Japanese game developers Gungho Online Entertainment It announced Thursday that it had dismissed a former executive employee on July 24 and was consulting with a criminal investigation agency to discuss the possibility of criminal proceedings against them.

The employee misappropriated approximately 246 million yen (about 1.675 million US dollars) of company funds through a job matching service operated by a third-party company. The employee acted as a contractor, and despite having no actual business, caused an outflow of about 100 million yen (about $681,000) by paying outsourcing fees to business partners. After a preliminary investigation, Gungho formed an internal investigation team by two independent auditors.

To prevent this, the company is strengthening compliance education and training programs, improving internal control over the approval process for using external supplier orders, and better monitoring its internal audits. Additionally, the company is reducing executive compensation to five directors to clarify management responsibilities, including representing directors and presidents, with the CEO’s three-month base salary down 30% while the executive director’s base salary down 10%.

The company said the impact of employee misappropriation of public funds on consolidated financial results for the fiscal year ended December 2025 is irrelevant.

Gungho Online Entertainment Known for puzzle games Puzzles and Dragons. The company hosts MMORPG’s Japanese server ragnarok online. Gungho is here too Teppen,,,,, You haveand Disney Pixel RPG game.

source: Gungho Online Entertainment ((Link 2), 4Gamer (Sugiura Ryo)