OSAKA -- The Osaka District Court sentenced the former managing director of the failed Kizu Credit Cooperative to a two-year prison term Tuesday for extending an illegal loan to a construction-related firm.
According to the court, Masaaki Kawamoto, 68, made a 2.2 billion yen loan to a construction firm in Neyagawa, Osaka Prefecture, without securing collateral.
Kawamoto was also responsible for an illegal banking procedure in which he allowed a construction firm to close a 1.8 billion yen fixed deposit account that the failed Osaka-based financial institution had secured as collateral, the court said.
Prosecutors had demanded a three-year prison term.