Kazuo Okada’s shifting fortunes just got more complicated.

 The Japanese billionaire, founder of slot machine manufacturing giant Universal Entertainment Corp., was suspended from the board of his own company this past week after an auditor uncovered a potentially fraudulent 2 billion yen ($17.3 million) private loan to the chairman’s holding company. The publicly traded company reported the possible criminal activity to the Japan Exchange Group and posted the find on its website along with the news that it had created a “Special Investigation Committee” to probe deeply into the matter.

 Now Okada’s future association with Las Vegas is in serious question. The suspicious loan deal is being investigated by the state Gaming Control Board, Chairman A.G. Burnett said. That puts Okada’s approval to do business with licensed Nevada casinos in jeopardy, and the investigation promises to ripple throughout the industry. If Nevada sends him packing, expect other jurisdictions to follow.

 “I can confirm that we have looked carefully at the release that was sent to the Japan Exchange, and we have opened an investigation, and that’s really all I can say,” Burnett said.

 State gaming regulators scrutinize game manufacturers and their top officials with the same intensity casino owners receive. The fact Universal’s top executives appear to have moved proactively may play well for the company, but it can only make Okada’s business life much more complicated as he deals with scandals on multiple fronts.

 Not many years ago, the enigmatic Okada appeared to be an inseparable part of the Las Vegas gaming pantheon. Not only was Universal a household name in the industry, but Okada’s friendship with casino developer Steve Wynn had blossomed into a major investment in Wynn Resorts.

 Now locked in a protracted litigation, Wynn and Okada parted company in 2012 after the Japanese billionaire insisted on pursuing a casino-resort development in the politically slippery Philippines market. Okada was dumped from the Wynn Resorts board after allegations surfaced that his lobbying efforts in the Philippines may have violated U.S. bribery laws.

 Okada’s seeming obsession with a Manila casino capable of competing with Macau  gambling resorts has drawn the attention of the FBI. Agents continue to investigate whether the $40 million Universal under Okada’s leadership funneled to a confidant of the head of the Philippines Amusement and Gaming Corporation (PAGCOR), reportedly in exchange for licensing and other concessions that would put the stalled Manila casino deal back on course.

 The withering Wynn-Okada litigation continues, as does the FBI’s bribery investigation.

 Now Universal’s top executives obviously see the potential disaster of having the founder’s shadow on the company. And Nevada’s top gaming regulators are taking up their own investigation.

 Universal’s public statement on the possible insider fraud involving the founder leaves little wiggle room for Okada. For the record, it’s never a good day when a gaming industry licensee discovers he’s been suspended from the board of his own company and has become the subject of a Special Investigation Committee.

 Nor is the news tsunami it generated exactly good for company stock. Universal shares declined 6 percent after articles were published through Japan and Asia and in The New York Times, The Wall Street Journal and other U.S. publications. That’s not only bad for Okada’s scarred reputation and Universal’s stock price, but it also poses a challenge to gaming regulators.

 In brief, Okada and company administrative division director Yoshinao Negishi are accused of funneling corporate assets from a Universal subsidiary, Tiger Resort Asia Limited., in 2015 to Okada Holdings Limited, which at the time was controlled by Kazuo Okada. The company’s audit report “said that there was a possibility that fraudulent acts were carried out, including but not limited to skipping the proper internal approval process.”

 Perhaps one day we’ll learn whether “skipping the proper internal approval process” is the same as embezzlement. Or maybe there’s a more innocent explanation. Surely that independent investigation commission will want to hear it.

 Although its stock took a hit following its announcement, Universal is a company worth billions. In its statement, it reassures investors and skeptics that it already has “prospects for collecting the funds” and in the end “there will be no impact on the Company’s business performance.”

 The impact on the founder’s reputation figures to be far greater.

John L. Smith is a longtime Las Vegas journalist and author. Contact him at [email protected]. On Twitter: @jlnevadasmith.

Feature photo: This image was originally posted to Flickr by Jeff Kubina at http://flickr.com/photos/95118988@N00/347687569. It is licensed under Creative Commons 2.0 on Wikipedia.