Tokyo, December 7

Japan’s market watchdog said today that scandal-hit Toshiba should be slapped with a record $60 million fine over a profit-padding scheme that hammered the reputation of one of Japan’s best-known firms.

Securities and Exchange Surveillance Commission said it was calling for 7.37 billion yen penalty — its biggest ever — as it reportedly looks into possible criminal charges against former Toshiba executives.

The country’s Financial Services Agency must now approve the recommended fine over allegations that Toshiba lied about its finances in earlier stock exchange filings.

Toshiba has admitted it had inflated profits by about $1.2 billion since the 2008 global financial crisis.