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Former Index President And CEO Arrested On Suspicion Of Fraud

Index Corporation’s former chairman Masami Ochiai, his wife, and the company’s president Yoshimi Ochiai have been arrested on suspicion of fraud. According to Japanese business publication, The Nikkei, all three were arrested today, May 28, by the Tokyo District Public Prosecutors Office on charges related to the company’s collapse. Investigations into the company’s dealings are currently under way and particularly concern falsified profit inflation within the business quarter ending August 2012.

Last year, Index Corporation filed for bankruptcy and was subsequently bought by Sega Sammy for 14 billion yen. Sega then split Atlus’ former parent company into two sections, mainly to focus on business growth but keeping game development intact. But Index Corporation’s fraudulent management dealings were not made clear until an investigation was opened. A snippet of the translated report can be found below, or in full, here.

There is a high probability that [Index Corporation’s] round-tripping antics were as such done in an attempt to avoid having the company delisted from JASDAQ [the Japanese equivalent to stock exchanges such as NASDAQ in the United States and Euronext in the European Union].

Investigators are continuing their inquiries under the suspicion that the series of fraudulent dealings were headed by Index’s management and that their window-dressing was performed systematically. When asked about Nikkei’s findings thus far, Masami Ochiai denied them, asserting that he had “not been engaging in fraud.” He has also stated the same thing to the governmental oversight committee during hearings conducted on the matter.

14 comments

  1. I don’t really know much about business stuff… Anyone know if this will affect Atlus’s games?

    1. No, I wouldn’t have thought so. Sega’s the sole owner of Atlus now, so they are in charge of Index’s divisions.

      The arrest just sheds light on the cause of Index’s bankruptcy and its fraudulent actions by the management before Sega bought them out. We knew they were in dire straits before the buy out, but this report now cements it. Hope that helps. :)

      1. Greed and corruption almost killed Atlus and their beloved RPG franchises. Now let’s hope the law throws them fuckers away int a cold, dark corner of prison and Atlus sues that money back and revitalize again.

        This is just disgusting and leaves me wondering if all 3rd parties and publishers are exactly like that. Remember the whole Modern Warfare 2 bonus debacle from Activision? They lied about promising the studio bonuses for the launch’s success and then try to blame them for breaching contract by talking with EA which only happened after Activision pissed IW off with their lies and half of the studio left to EA.

  2. So the truth comes out of Atlus’ s near collapse. Fucking greed almost do them in and now I hope Atlus will get back up after they’re done with those fucking financial conspiring assholes.

    1. The collapse of the corrupted forces has been forseen for ages since the prophecy of the holy N’s rise to power…

  3. Glad Index’s awful fraudulant schemes are coming out of the closet “now” and not while Atlus was still owned by them. It could have menat something truly awful could have happened to Atlus. Who knows where they would be now if they weren’t sold off to SEGA?

  4. Sadly, this most likely doesn’t mean Atlus will revitalize itself as it’s own company & will remain apart of Sega. It’s possible but I think it’s a good idea to not get your hopes up.

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