Let's Japan.org Debunking Eikaiwa and Ramblings in Japan

Sahashi's trial began today, and as expected, he admitted to taking 320 million yen from the NOVA employee's shayukai fund and apologized for the trouble he caused. His lawyers, however, claim that Sahashi's actions do not amount to a crime since as he was acting in the interests of the company.

The defense counsel for the founder of NOVA, the failed operator of an English-language school chain, asserted Monday that he was not guilty of embezzling funds from the employees' mutual assistance association, while the defendant admitted to diverting the money.

"There is no doubt about the facts," Nozomu Sahashi, 57, former president of NOVA, told his first hearing at the Osaka District Court on Monday. "I deeply apologize for causing great trouble to many students and employees. But, I didn't know I wasn't allowed to use the funds."

His defense counsel denied that his practice constituted embezzlement. "He diverted the money to refund tuition fees to students who canceled their contracts, and had no intention of gaining illegal profits. His actions don't constitute a crime."

Prosecutors will demand a penalty for Sahashi in their closing argument to be held on June 26 after questioning witnesses and the defendant.

I'm no lawyer, but the "I-didn't-know-it-was-illegal-but-took-the-money-anyway-because-it-was-in-the-interest-of-the-company" defense sounds pretty hackneyed to me. Then again, it should come as no surprise that this is Sahashi's angle. As we saw in magazine interviews after he was sacked, he's shown himself to be a very defiant and arrogant man.

Since there's not a whole lot of new information about the case that you don't already know, newspapers have taken the opportunity to refresh readers' memories. Nothing sells like reporting on the trial of an unrepentant president who screwed hundreds of thousands of people out of lesson fees and salaries. An article in the Kansai version of the Sankei shimbun tells the story of a 71-year old retiree who forked over 800 thousand yen for English lessons only to have NOVA go bankrupt shortly after he paid for his lessons. He can't go to the new NOVA because it's too far away, so he's given up on ever seeing a refund. He feels Sahashi owes students an explanation as to why NOVA went bankrupt.

The article also goes on to note other battles in the courts. A group of 27 students, mainly in the Kansai region, are suing the old NOVA's management and its auditors for approximately 21 million yen (roughly $221 thousand USD) in compensation. Lawyers for the students say it's regrettable that nobody has sought to hold NOVA's business practices criminally liable. He added that this civil case is one step toward finding the truth. This sounds like the lawsuit mentioned here last year where a group of 24 former students sued for 16 million yen, but the number of plaintiffs and amount of money sought don't match. Maybe more students have climbed on board?