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Toshiba Shares Plunge as U.S. Unit Faces Accounting Probe

  • Justice Department, SEC reviewing conduct in Toshiba report
  • Fresh scrutiny could subject the company to more penalties
The Treasury put together the document with the other agencies that regulate Treasury markets: The Federal Reserve, New York Fed, Securities and Exchange Commission and Commodity Futures Trading Commission.
Photographer: Joshua Roberts/Bloomberg via Getty Images
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Toshiba Corp. is under investigation by the U.S. over allegations that it hid $1.3 billion in losses at its nuclear power operations, according to two people familiar with the matter. Shares plunged in Tokyo.

The Justice Department and the Securities and Exchange Commission are looking into whether fraud was committed, said the two, who asked not to be named because the investigations aren’t public. The probes, they said, follow one by Japan’s securities regulator, which found that Toshiba falsified financial statements and documents involving its issuance of corporate bonds.