A special panel looking into accounting fraud at Nikko Cordial Corp. issued a report Tuesday saying top management was involved in inflating profits at the nation's third-largest brokerage.

The findings by the panel -- four outside legal experts led by Surugadai Law School professor Masaharu Hino -- contradict the brokerage's earlier contention that the fraud was perpetrated by a single employee.

In its report, the panel blames Hajime Yamamoto, Nikko Cordial's chief financial officer from October 2001 to February 2006, for being directly involved in a fraudulent deal allegedly used to inflate profits at the brokerage.