Shoji Kuwashima is the new president of Nikko Cordial Corp.

Shoji Kuwashima is the new president of Nikko Cordial Corp.

Nikko Cordial Corp. has said that they are replacing resigned President Junichi Arimura with technology chief Shoji Kuwashima.

Junichi Arimura had earlier resigned over charges that the company made false earnings statements under his leadership. He was not alone… even Chairman Masashi Kaneko had to resign over those allegations.

Arimura said at a press conference in Tokyo today on the new developments: “We can’t deny this was a corporate failure. It’s unforgivable that we, as a pillar of the stock market, would allow such an error.”

The company has suffered big time at the stock market as their share has plunged 23 percent in three days. They might even face a record 500 million yen fine over these allegations.

The Securities and Exchange Surveillance Commission had said earlier this month that Nikko overstated profit in documents related to a sale of 50 billion yen of corporate bonds on Nov. 22, 2005.