Financial regulators on Wednesday raided the office of game software maker Index Corp. and related places, suspecting it window dressed its earnings by padding its sales.
The Securities and Exchange Surveillance Commission raided the company's office in Tokyo's Setagaya Ward and the home of the company's chairman, sources close to the matter said.
The company has been financially strapped since its creditor bank Incubator Bank of Japan went bankrupt in 2010.
According to the sources, Index is believed to have inflated its sales for the year through August 2012 and others with fictitious transactions between several companies in violation of the Financial Instruments and Exchange Law.
Index, established in September 1995, was listed on the Osaka Securities Exchange's Jasdaq market in March 2001.