The Tokyo District Court has sentenced three former top executives of the failed Long-Term Credit Bank of Japan, the predecessor of Shinsei Bank, to suspended prison terms for falsifying financial statements to conceal massive bad loans.
Former LTCB President Katsunobu Onogi, 66, was sentenced to a three-year term, suspended for four years. Yoshiharu Suzuki, 65, and Masami Suda, 62, both former vice presidents of the LTCB, were sentenced to two years, suspended for three years.
This is the first case in which former executives have faced criminal charges under the Financial Reconstruction Law, enacted in 1998. The law obliges a failed financial institution to file criminal charges against former top officials.