The prosecution is seeking two years and six months in prison for Yuji Naka in his case of insider trading, as well as a fine of 2.5 million yen and a surcharge of 170 million yen. The third trial for the case involving Sonic creator Yuji Naka and former employer Square Enix was held on June 1, 2023 at the Tokyo District Court. The verdict will be revealed on July 7, 2023. [Thanks, DenFamiNico Gamer and Yahoo News!]
This proposal in the insider trading case is not the final sentence. If the Tokyo District Court pursues the prosecution’s proposal, Yuji Naka won’t only have to go to prison, but will have to pay the equivalent in Japanese Yen to $17,880 USD as a fine and over $1.2 million dollars as a surcharge.
During the trial, the prosecution argued that defendant Naka misused his authority to gain an unfair advantage over ordinary investors. Meanwhile, the defense asked for a suspension of sentence as well as a reduction of the fine and surcharge, alleging that defendant Naka did not actively seek out insider information during his time at the company, as that the information was mistakenly sent to him.
Yuji Naka is accused of violating the Financial Instruments and Exchange Act, after he invested in Square Enix stock with insider knowledge of two unannounced games at the time, these being Dragon Quest Tact and Final Fantasy VII: The First Soldier. On March 2, 2023, Naka pleaded guilty during the first trial of the insider trading case.
