Toshiba Head Resigns in Profits Scandal

Toshiba Chief Executive Hisao Tanaka resigned from his position Tuesday amid allegations that he was involved in efforts to overstate the company’s profits over several years. Half of the company’s 16 board members will resign in a sweeping overhaul after the directors were accused of exaggerating earnings by $1.2 billion. A review by an independent panel paid for by the company, published Tuesday, said the three most recent CEOs were involved in inflating the numbers. “The improper accounting procedures were continuously carried out as a de facto policy of the management,” said the report. “And it was impossible for anyone to go against the intention amid Toshiba’s corporate culture.”