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. Last Updated: 07/27/2016

Japan Sentences Ex-Yamaichi Execs




TOKYO -- The Tokyo District Court on Tuesday sentenced two top executives of Yamaichi Securities Co. to jail terms for concealing losses that led to Japan's biggest-ever financial company failure.


Atsuo Miki, 64, former president of the brokerage that collapsed in 1997, was sentenced to 30 months in jail. Former chairman Tsugio Yukihira, 68, received a similar term, suspended for five years, Kyodo news agency said.


The two were charged with concealing losses of more than 200 billion yen ($1.9 billion) and paying dividends illegally to shareholders.


Yamaichi Securities, formerly Japan's No. 4 brokerage, had to shut its doors in November 1997 following revelations of massive off-the-books losses. Its debts exceeded assets by 160.3 billion yen.


Miki was the first Yamaichi executive to be sentenced to a jail term since the 102-year-old brokerage was declared bankrupt in June last year. Miki immediately filed an appeal against the ruling with the Tokyo High Court, Kyodo said.


"Both defendants had taken part in the off-balance-sheet measures over the losses from the beginning and were clearly aware due to having received reports of account-rigging," Kyodo quoted Judge Kaoru Kanayama as saying.