Announcement Regarding Misconduct by a Former Executive of Our Subsidiary
It has been discovered that a former executive of Delightworks Racing Inc. (DWR), a subsidiary of Delightworks Inc., improperly gained profits through fraudulent claims for private expenses and inflated expense reports. The company is considering legal action against the former executive and related companies, and plans to strengthen its internal management system to prevent recurrence.
📋 Article Processing Timeline
- 📰 Published: May 14, 2026 at 03:42
- 🔍 Collected: May 13, 2026 at 19:02
- 🤖 AI Analyzed: May 13, 2026 at 19:04 (2 min after Collected)
We hereby announce that misconduct (hereinafter referred to as "the Misconduct") by a former executive (hereinafter referred to as "the Former Executive") of Delightworks Racing Inc. (hereinafter referred to as "DWR"), a subsidiary of Delightworks Inc. (hereinafter referred to as "the Company"), has been discovered. We deeply regret this situation and sincerely apologize for the significant inconvenience and concern caused to all our stakeholders.
1. Overview of the Misconduct
It has been discovered that a company (hereinafter referred to as "Company A") in which one former executive of DWR participated and which is managed by their relatives, improperly billed the Company for private expenses that should have been borne by the Former Executive or their relatives, and settled these from deposits. Furthermore, Company A improperly inflated the amounts of expenses that should have been reimbursed at actual cost and billed the Company for settlement, thereby gaining undue profits. These inappropriate billings and settlements were repeatedly carried out over a certain period, both during and around the Former Executive's tenure at DWR. The Former Executive has admitted that private expenses that should have been borne by the Former Executive or their relatives should not have been billed to the Company, while also stating that there is a possibility that the settlements were made in error.
The Former Executive has already resigned from DWR, and the Company and DWR have terminated their contractual relationship with Company A. However, the Company and DWR are currently considering legal measures, including the return of settled expenses, against Company A, the Former Executive, their relatives, and others.
2. Initiatives for Recurrence Prevention
Both the Company and DWR take this situation seriously and will strive to strengthen their internal management systems, including reviewing business processes across group companies and enhancing compliance education, to prevent recurrence and restore the trust of all stakeholders.
[Contact for inquiries regarding this matter]
For inquiries regarding this matter, please contact us via the inquiry form on our corporate website.
1. Overview of the Misconduct
It has been discovered that a company (hereinafter referred to as "Company A") in which one former executive of DWR participated and which is managed by their relatives, improperly billed the Company for private expenses that should have been borne by the Former Executive or their relatives, and settled these from deposits. Furthermore, Company A improperly inflated the amounts of expenses that should have been reimbursed at actual cost and billed the Company for settlement, thereby gaining undue profits. These inappropriate billings and settlements were repeatedly carried out over a certain period, both during and around the Former Executive's tenure at DWR. The Former Executive has admitted that private expenses that should have been borne by the Former Executive or their relatives should not have been billed to the Company, while also stating that there is a possibility that the settlements were made in error.
The Former Executive has already resigned from DWR, and the Company and DWR have terminated their contractual relationship with Company A. However, the Company and DWR are currently considering legal measures, including the return of settled expenses, against Company A, the Former Executive, their relatives, and others.
2. Initiatives for Recurrence Prevention
Both the Company and DWR take this situation seriously and will strive to strengthen their internal management systems, including reviewing business processes across group companies and enhancing compliance education, to prevent recurrence and restore the trust of all stakeholders.
[Contact for inquiries regarding this matter]
For inquiries regarding this matter, please contact us via the inquiry form on our corporate website.