Toyota has a drug problem. The company and CEO Akio Toyoda are dealing with the fallout from a bizarre case surrounding his newly promoted head of global public relations, Julie Hamp.

It all started on June 18, when Hamp, an American who moved to Japan earlier this year, was arrested for allegedly having a controlled drug sent to her from Michigan. The powerful painkiller oxycodone is a relatively common prescription drug in the U.S., but is designated as a narcotic in Japan, where users need permission to import it. Authorities could have chosen to confiscate the 57 pills sent to Hamp and schooled her on local regulations. Instead, they decided to make an example of her in ways that could damage corporate Japan's efforts to attract foreign talent and diversify its boardrooms.

The day after Hamp's arrest, Toyoda called a news conference to defend the company's highest-ranking female executive ever. He launched into a spirited defense, declaring that Hamp hasn't intentionally broken any laws. Those words came back to haunt Toyoda last week when police raided the company's Toyota City headquarters and its Tokyo and Nagoya offices. The coordinated raids smacked of retribution by the police for Toyoda's standing by a foreigner over local authorities.