Yoshiaki Tsutsumi

In the first session of his high-profile Tokyo District Court trial, the 71-year-old defendant -- once listed by Forbes magazine as the richest man in the world -- said he would not contest the charges.

"As the one who headed the Seibu Group, I am painfully aware of the responsibility for causing trouble for shareholders and many other people, and I apologize," he told the court.

The defense is believed to be pursuing a strategy of persuading the court to show leniency. Tsutsumi's lawyers told the court that their client was unaware of the illegality of his actions, and that he and others involved were motivated solely by their desire to protect shareholders.

Tsutsumi is alleged to have conspired last June with then Seibu Railway President Terumasa Koyanagi to have the railway file false financial statements with authorities so it would appear that the number of its shareholders was larger than it actually was.

The ploy, which dated back four decades and used the names of company employees as registered shareholders, was designed to camouflage the fact that the bulk of the stake was actually held by parent firm Kokudo Corp.

The Japan Times Weekly: June 25, 2005
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