News Column

Chairman of game maker Index indicted over false earnings report

June 17, 2014

Tokyo prosecutors indicted the chairman of bankrupt mobile game maker Index Corp. on Tuesday on charges of falsifying the company's earnings report.

The prosecutors indicted Masami Ochiai, 54, as well his wife Yoshimi Ochiai, 48, the company's president, but dropped charges against the corporation.

The Securities and Exchange Surveillance Commission brought charges against the couple on Monday.

Before the couple were arrested in May, Masami Ochiai had denied the allegation in an interview with Kyodo News. His wife had also denied involvement in the falsification.

The couple are accused of overstating sales to record a net profit of around 200 million yen for the business year to August 2012, when the company was actually insolvent with a net loss of about 600 million yen.

The company is alleged to have carried out circular transactions with trading partners to artificially inflate sales.

It is believed that the earnings report was falsified to keep the company listed, according to the prosecutors and the commission.

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Source: Japan Economic Newswire

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