TAKEFUJI CHAIR GOES DOWN
KEYWORDS: WIRETAPPING, BUGGING, CRIMINAL LAW, TELECOMMUNICATIONS BUSINESS LAW

The illegal wire tapping case against the chairman and founder of Japan’s largest consumer finance firm, Takefuji Corp. appears to be drawing to an end. The chairman had ordered the phones illegally tapped of a journalist writing critical articles about the company. In the trial the ex-chairman,  resigned, confessed and said he was sorry. Yet his actions indicated anything other than contriteness. It turned out that payments of cash had been made to other directors so as not to implicate the ex-chairman. In May the Takefuji employee who had actually carried out the bugging was given a three year suspended sentence. In November, the ex-chairman was given a 3 year sentence, suspended for 3-4 years. Prosecutors in March 2004 also hit the chairman of the company with charges of defaming the journalist who had written about his being wiretapped. The company claimed in its website that the journalist was lying. The Moneyleding Control Law says companies with shareholders with criminal records can not hold more than 25% of a moneylending business or it will lose its license. Thus the family of the founder ex-chairman started to sell some of its 58% controlling interest so that Takefuji would not lose its license. Reports had it however, that strenuous efforts were made by the ex-chairman and his family to maintain control through under the table documentation and the Financial Services Agency began investigations.

Copyright 2005. All rights reserved Attorney Roderick H. Seeman

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