Index’s Former CEO And President Both Arrested For Fraud

By Sato . May 28, 2014 . 3:30am

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Last year, Atlus’ former parent company, Index Holdings, ran into some trouble with the law after being suspected of improper accounting. This led to Index filing for bankruptcy and the eventual sale to Sega Sammy. Now, Nikkei reports that the former Index CEO and president have both been arrested.

 

The Nikkei article says that the former Index CEO Masami Ochiai and his wife, former president, Yoshimi Ochiai, have both been arrested earlier today in Japan on charges of falsifying of financial records and inflating profits during their time with Index.

 

According to the Nikkei source, the method used was the round-tripping barter method, that gave the appearance of Index’s dealings of software and IT systems to keep records of the transaction taking place. This eventually led to the suspicion of the company’s inflation of sales and profits from their business quarter which ended on August 2012.

 

Index’s stock report indicates that during this period, their sales were up at around 183 billion yen (about $1.8 billion) with the final profits at around 4 billion yen (about $39 million). These figures were believed to be the company’s first surplus since the previous six quarters prior to that, but it’s been reported as a result of the inflated numbers from the round-tripping method.

 

The insolvency came to light when Index filed for bankruptcy, which followed by an internal investigation on the matter. According to the report, the round-tripping was likely done as an attempt to prevent being delisted from the Japanese stock market (JASDAQ).

 

Masami Ochiai continues pleading his innocence by saying he “did not do anything illegal” when further asked about Nikkei’s coverage on the matter, which he also stated during his recent hearing.


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  • Shippoyasha

    Pretty good timing on Atlus to get on the Sega boat. If they stuck with Index, I wonder if it could have affected the game company itself.

    • Morgan Rodgers

      I’m pretty sure Sega actually bought Index, not just Atlus (then they renamed Index as Atlus). This shouldn’t effect them though, it sounds like the financial part came to light a while ago (which is probably what motivated Index to sell), this is just an announcement of the criminal charges.

      • Pdugna

        Sega bought index and split Atlus off from Index, Index is still its own thing.

  • Caribbean Brony

    Man, Atlus dodged a huge bullet there.

    • NorsonWood

      A shotgun bullet that is.

      • Ric Vazquez

        They dodged one big shitstorm that’s for sure

    • nobody

      Actually… I doubt Index would have been able to do a hostile takeover on Atlus in the first place if they didn’t lie about their profits. Atlus would still be their own free company if it wasn’t for Index.

    • Chersea

      I guess Atlus didn’t get to summon its persona with the bullet from the evoker then.

      • Surgeon of Death

        Evokers dont fire bullets?

        • Chersea

          Well, yeah, but evokers look like guns and guns shoot bullets… bad joke?

          • transferstudentx

            …….yes

          • TheCynicalReaper

            Meh. I like it

    • LightningFarron19

      This entire fiasco actually makes Yoichi Wada look like a saint by comparison.

      • ishyg

        Still hate him.

  • urbanscholar

    Hahaha perfect image guys!

    Mr Ochiai here’s a helping of karma all for you

  • CycloneFox

    Great scene of Persona 4.

  • Sentsuizan_93

    Oh dear. That is some karma kicking in…
    Goodness knows what would’ve happened if SEGA didn’t buy Atlus out when they did.

  • Rawindra

    Lucky Sega… or Atlus was it?

  • Raine

    “So apparently, bringing swords into a food court is against the law.”

  • Hexodious

    It’s time for them to get new management.

    • natchu96

      Well fortunately for Atlus they kinda already have ages ago.

      • Hexodious

        New management, not a management.

  • http://shadious.tumblr.com/ Vince

    Moolahs and dough~!

  • Desk

    I feel like there is a persona song reference somewhere here.

  • Makoto Yuki

    So Yu is the president and Yosuke is the CEO…

  • http://hanzoadam.tumblr.com/ Hanzoadam

    That’s really interesting to be honest, as an accountant

    • rurifan

      Getting new ideas? :)

  • JohnNiles

    Brilliant choice for a header image.

  • ShawnOtakuSomething

    Wow…..what a bummer. Atlus must have seen this coming in the cards

    • Anewme…Again

      It’s Index who decided to sell Atlus, if they didn’t Atlus would have been stuck with them.

      • ShawnOtakuSomething

        I very aware of what happened

    • http://s1.zetaboards.com/Espada_of_Alexandria/index/ konpon568

      Index… cards… ha!

      • ShawnOtakuSomething

        you are the only one who got the joke lol

        • http://s1.zetaboards.com/Espada_of_Alexandria/index/ konpon568

          Yeah, I’m the only moogle who would laugh at incredibly bad puns. Tends to be the case at times.

  • Kornelious

    Well…..You think you know someone huh :(

  • Freud_Hater

    Well, never thought i’d say this, but thank god Sega was here… although Atlus probably would’ve been bought by someone else…

    • ShawnOtakuSomething

      someone like facebook…….

      • Freud_Hater

        I would love for Facebook to have a widely Persona theme, honestly *__*

        • Postnjam

          X would like to form a social link.

        • ShawnOtakuSomething

          people would send you invites to play SMT MMO all the time

          • Freud_Hater

            Better that than invites to play Candy crush ¬¬

          • ShawnOtakuSomething

            or farmville with demons farm animals

  • http://epiclyamazing.wordpress.com/ AzureNova

    Damn shame -_-

  • https://twitter.com/mikedo2007 mikedo2007

    Yeah I saw this on ANN this morning. Will this scandal effect game release both in Japan and US??

    • flashmozzg

      No, since atlus was bought by sega previously, so all this stuff concerns only former CEO of former parent company.

      • https://twitter.com/mikedo2007 mikedo2007

        Well that’s good to know, because I’ve seen delay whenever a scandal like this happen in other part of the industry.

  • Hinataharem

    That’s saddening. They could have had a worry free life if they had been honest

    • Herok♞

      When you are in charge of a company I don’t think honestly will lead to a completely worry free life.

      • Hinataharem

        Maybe I worded that wrong. A job comes in with worries in itself, you agree to those worries when you take the job. I meant, now they have things like court and other future difficulties

        • Herok♞

          Fair enough

        • BlackC#Bro

          If the company fails or is delisted, thousands of people could lose their job. How exactly is just letting that happen going to lead to a worry free life?

          • Hinataharem

            Again, I spoke incorrectly. Forgive my foolishness

          • BlackC#Bro

            W-when you apologize like that it makes me feel bad ;___;

          • Hinataharem

            No! Don’t feel bad. Its okay (ㆁㅅㆁ✿)

  • otakumike

    Everyday isn’t great at your Junes. :(

  • Kaetsu

    Good. Index almost screwed over Atlus.

  • MSJ

    talk about dodging a bullet there Atlus and lol at the header image too good :D

  • Morningstar

    Dumb question (I know about the Atlus connection) was this company responsibility for the A Certain Magical index? (Similar names got me curious)

    Also I’m glad that Sega bought the whole shebang, let’s hope that they didn’t inherit any of the corruption.

    • Neppygear

      The two Indexes have nothing in common other than their names and shady dealings.

  • Kari

    The Nikkei article says that the former Index CEO Masami Ochiai and his wife, former president, Yoshimi Ochiai. Hmmm that’s all I needed to know

  • DividedSeraph

    Maybe some credit is due, mm?
    http://pepsimangb.tumblr.com/post/87095546239/hello-again-siliconera-please-stop-plagiarizing-my

    Plagiarism is not a good standard.

    • Morningstar

      That guy should sue if this keeps up.

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