Prosecutors sought a two-year prison term Friday for a former executive of defunct Snow Brand Foods Co. accused of defrauding an industry body out of 196 million yen by falsely labeling beef to receive subsidies under a government buyback program.
Tetsuaki Sugawara, 47, former head of the company's Kansai Meat Center in Hyogo Prefecture, is on trial before the Kobe District Court. He is the first former executive facing a prison term over the Snow Brand Foods scandal.
According to the prosecution, Sugawara, in a conspiracy with Hiromi Sakurada, 61, former managing director of the company, and Shigeru Hatakeyama, 56, former head of the company's meat sales and procurement division, falsely labeled 30 tons of imported beef as domestic in October and November and swindled the industry body out of 196 million yen under the buyback program in January.
The industry body, the Japan Ham & Sausage Processors Cooperative Association, purchased 280 tons of beef from Snow Brand Foods, including the 30 tons of falsely labeled beef.