Posts Tagged ‘Index Corporation’

Former CEO of Index Corporation Arrested

The former chief executive of Atlus parent Index Corporation, Masami Ochiai, has been arrested on charges of fraudulent activity relating to the company’s shutdown. Mr. Ochiai and his wife, former president Yoshimi Ochiai, are alleged to have falsified financial reports through the use of round-tripping: the trading of unused assets between companies, and the agreement to buy back said assets for roughly the same price, which is disguised as a boost in investment activity.

The source article in Nikkei cites “a source knowledgable in the matter,” which states Index used this practice to artificially inflate stock volume for the business quarter ending in August 2012. This gave the appearance of a 4 billion yen profit at the time, hiding the company’s insolvency until it entered bankruptcy in June last year. Mr. Ochiai denies the allegations, and the investigation by the Tokyo District Public Prosecutor’s Office is still ongoing.

Source: Gematsu