MOLX Molex Incorporated (MM)

Molex Inc. (MOLX, MOLXA) said an individual in its finance group in Japan got about $175 million of unauthorized loans in the company's name from third-party lenders.

The person used the $175 million in loans to trade on margin in unauthorized accounts in Molex Japan's name, Molex said. The person also is believed to have misappropriated cash from Molex Japan that resulted in a loss of about $15 million.

The electronics products manufacturer said the individual has admitted to forging documentation in arranging the transactions, and the company has hired legal counsel and is investigating the matter.

Molex said in January that it swung to a fiscal second-quarter profit as sales increased.

Shares of the company fell 3 cents to $21.41 in recent trading. The stock has risen 35% in the past 12 months.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com