SEC Charges Former Panasonic Executives
Former Panasonic Avionics CEO Paul Margis and CFO Takeshi Uonaga were charged by the SEC for orchestrating a bribery scheme involving $1.76M in improper payments and $82M in fraudulent revenue recognition, leading to $75K and $50K penalties respectively, with Uonaga suspended from practicing before the SEC for five years.
The SEC charged Paul A. Margis, former CEO of Panasonic Avionics Corp., with using a third party to pay over $1.76 million to consultants, including a government official, to secure business, while falsifying records and misleading auditors about internal controls. Takeshi 'Tyrone' Uonaga, the former CFO, caused $82 million in improper revenue recognition through a backdated contract and made false statements to auditors regarding financial statements and accounting controls. Both consented to SEC orders without admitting or denying guilt; Margis was fined $75,000, and Uonaga was fined $50,000 and suspended from appearing before the SEC as an accountant for five years.
The SEC charged Paul A. Margis, former CEO of Panasonic Avionics Corp., and Takeshi 'Tyrone' Uonaga, its former CFO, with violating federal securities laws by engaging in bribery and fraudulent accounting practices. Margis orchestrated over $1.76 million in improper payments to consultants—including a government official—through a third party, circumvented internal controls, falsified records, and misled auditors about the adequacy of accounting systems. Uonaga caused $82 million in improper revenue recognition by backdating a contract and made false representations to auditors concerning financial statements and internal controls. Both consented to SEC orders without admitting or denying the findings, with Margis ordered to pay a $75,000 penalty and Uonaga fined $50,000 and suspended from practicing before the SEC for five years. The misconduct also led to a prior settled cease-and-desist action against parent company Panasonic Corp. for violations of anti-bribery, books and records, internal accounting controls, and reporting provisions. The SEC’s investigation involved multiple international regulators, including Japan’s Financial Services Agency, Singapore’s Monetary Authority, and Australia’s ASIC, with assistance from the U.S. Department of Justice. This case underscores the SEC’s focus on holding senior executives accountable for systemic failures in compliance and ethical governance.
Exhibits & Attached Documents (2)
Extracted insights
- $82.00M $82 million $10M–$100M
- $1.76M $1.76 million $1M–$10M
- $75K $75,000 $10K–$100K
- $50K $50,000 $10K–$100K
- agency department of justice criminal division’s fraud section
- person false representations
- company former senior executives of the u.s. subsidiary of panasonic corp.
- person panasonic avionics
- company panasonic corp.
- person takeshi uonaga
- Securities and Exchange Commission charged two former senior executives
- Securities and Exchange Commission charged former senior executives of the U.S. subsidiary of Panasonic Corp.
- Paul A. Margis used a third party
- Paul A. Margis paid $1.76 million
- Panasonic Avionics recorded payments
- Paul A. Margis circumvented company procedures
- Paul A. Margis made materially false or misleading statements
- Takeshi Uonaga caused Panasonic Corp.
- Panasonic Corp. recorded $82 million in revenue
- Takeshi Uonaga made false representations
- Securities and Exchange Commission require penalties
- Paul A. Margis pay $75,000
- Takeshi Uonaga pay $50,000
- Securities and Exchange Commission suspended Takeshi Uonaga
- Commission instituted cease-and-desist proceeding
- Panasonic Corp. violated provisions of the federal securities laws
- Securities and Exchange Commission conducted investigation
- Department of Justice Criminal Division’s Fraud Section assisted Securities and Exchange Commission
The Securities and Exchange Commission today charged two former senior executives of the U.S. subsidiary of Panasonic Corp. with knowingly violating the books and records and internal accounting controls provisions of the federal securities laws and causing similar violations by the parent company. According to the SEC’s order against Paul A. Margis, then-CEO and president of Panasonic Avionics Corp., Margis used a third party to pay over $1.76 million to several consultants, including a government official who was offered a lucrative consulting position to assist Panasonic Avionics in obtaining and retaining business from a state-owned airline. Panasonic Avionics falsely recorded these payments, and Margis circumvented company procedures for engaging the consultants, who provided few, if any services. Margis also made materially false or misleading statements to Panasonic Avionics’ auditor regarding the adequacy of Panasonic Avionics’ internal accounting controls and accuracy of the company’s books and records. According to the SEC’s order against Takeshi “Tyrone” Uonaga, then-CFO of Panasonic Avionics, Uonaga caused Panasonic Corp. to improperly record $82 million in revenue based on a backdated contract and made false representations to Panasonic Avionics’ auditor regarding financial statements, internal accounting controls, and books and records. “Holding individuals accountable, particularly senior executives, is critical,” said Antonia Chion, Associate Director of the SEC’s Enforcement Division. “Compliance starts at the top and senior executives who fail in their duty to comply with the federal securities laws will be held responsible.” The SEC’s orders require Margis and Uonaga to pay penalties of $75,000 and $50,000, respectively. The order against Uonaga also suspends him from appearing or practicing before the Commission as an accountant, which includes not participating in the financial reporting or audits of public companies. The order permits Uonaga to apply for reinstatement after five years. Margis and Uonaga consented to the entry of their orders without admitting or denying the findings. In April of this year, the Commission instituted a related settled cease-and-desist proceeding against Panasonic Corp. finding that it violated the anti-bribery, anti-fraud, books and records, internal accounting controls, and reporting provisions of the federal securities laws. The SEC’s investigation was conducted by Anik Shah, Mark Yost, Gregory Bockin, and Sonali Singh, and supervised by Charles E. Cain, Ms. Chion, Stacy Bogert, and Kristen Dieter. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section as well as the following regulators: Swiss Financial Market Supervisory Authority, Ontario Securities Commission, Securities and Commodities Authority of the United Arab Emirates, Financial Services Agency of Japan, Monetary Authority of Singapore, Securities Commission of Malaysia, Australian Securities & Investments Commission, and the Securities and Exchange Commission of Pakistan.
The Securities and Exchange Commission today charged two former senior executives of the U.S. subsidiary of Panasonic Corp. with knowingly violating the books and records and internal accounting controls provisions of the federal securities laws and causing similar violations by the parent company. According to the SEC’s order against Paul A. Margis, then-CEO and president of Panasonic Avionics Corp., Margis used a third party to pay over $1.76 million to several consultants, including a government official who was offered a lucrative consulting position to assist Panasonic Avionics in obtaining and retaining business from a state-owned airline. Panasonic Avionics falsely recorded these payments, and Margis circumvented company procedures for engaging the consultants, who provided few, if any services. Margis also made materially false or misleading statements to Panasonic Avionics’ auditor regarding the adequacy of Panasonic Avionics’ internal accounting controls and accuracy of the company’s books and records. According to the SEC’s order against Takeshi “Tyrone” Uonaga, then-CFO of Panasonic Avionics, Uonaga caused Panasonic Corp. to improperly record $82 million in revenue based on a backdated contract and made false representations to Panasonic Avionics’ auditor regarding financial statements, internal accounting controls, and books and records. “Holding individuals accountable, particularly senior executives, is critical,” said Antonia Chion, Associate Director of the SEC’s Enforcement Division. “Compliance starts at the top and senior executives who fail in their duty to comply with the federal securities laws will be held responsible.” The SEC’s orders require Margis and Uonaga to pay penalties of $75,000 and $50,000, respectively. The order against Uonaga also suspends him from appearing or practicing before the Commission as an accountant, which includes not participating in the financial reporting or audits of public companies. The order permits Uonaga to apply for reinstatement after five years. Margis and Uonaga consented to the entry of their orders without admitting or denying the findings. In April of this year, the Commission instituted a related settled cease-and-desist proceeding against Panasonic Corp. finding that it violated the anti-bribery, anti-fraud, books and records, internal accounting controls, and reporting provisions of the federal securities laws. The SEC’s investigation was conducted by Anik Shah, Mark Yost, Gregory Bockin, and Sonali Singh, and supervised by Charles E. Cain, Ms. Chion, Stacy Bogert, and Kristen Dieter. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section as well as the following regulators: Swiss Financial Market Supervisory Authority, Ontario Securities Commission, Securities and Commodities Authority of the United Arab Emirates, Financial Services Agency of Japan, Monetary Authority of Singapore, Securities Commission of Malaysia, Australian Securities & Investments Commission, and the Securities and Exchange Commission of Pakistan.