Aichi Electric, a transformer manufacturer affiliated with Chubu Electric Power and headquartered in Kasugai, Aichi Prefecture, has filed a lawsuit seeking more than JPY 325 million (approximately CNY 16.5 million or USD 2.3 million) in damages against a former employee and a trading company. The company, which is also involved in the production of printed wiring boards (PWBs), a key component in the PCB manufacturing process, is considering filing a criminal complaint.

According to Aichi Electric, a man in his 40s from the company's procurement division engaged in fraudulent transactions over a period of 14 years, from January 2011 through last year. The employee ordered copper materials from a trading company and personally received the goods without proper internal approval. The payments for the copper were disguised by charging them through a different trading company based in Kita Ward, Nagoya, which inflated the prices of unrelated products billed to Aichi Electric.

The company filed the lawsuit with the Nagoya District Court on April 25 against both the former employee and the trading company involved. The employee has not reported to work since July 2024.

Aichi Electric stated that the details of what happened to the copper materials, including whether they were resold, remain unclear. The company is strengthening its internal controls to prevent future misconduct and is seriously considering pursuing criminal charges.