U.K. prosecutors started a formal probe into accounting irregularities at Olympus Corp. after the company said last week that three executives colluded to hide losses from investors, a source said.
Britain's Serious Fraud Office, which prosecutes white-collar crime, will work with the U.S. Justice Department and Japanese authorities, said the source, who wasn't authorized to speak about the case and declined to be identified.
The company reversed denials last week that there was any wrongdoing over $687 million in advisory fees paid on the $2 billion acquisition of Gyrus Group PLC in 2008 and said it paid inflated fees to advisers to hide losses. Olympus fired Executive Vice President Hisashi Mori over his role in the coverup, former Chairman Tsuyoshi Kikukawa resigned last month, and auditor Hideo Yamada will step down.