Koji Chiba, the former chairman of Duskin Co. who was arrested this week over the shady use of company funds, made 1.3 billion yen by selling most of his unlisted Duskin shares after the firm's food franchise was hit last year by scandal, sources alleged Friday.
Chiba, 63, allegedly began unloading his Duskin shares last July -- two months after the Duskin-owned Mister Donut chain was found to have sold dumplings imported from China that contained a banned additive. He completed his share selloff in March.
Shuichi Shibahara, 62, a former Duskin senior managing director who was arrested along with Chiba, also sold most of his Duskin stock between April 2001 and last October, netting 210 million yen, the sources said.
The Tokyo Public Prosecutor's Office arrested Chiba and Shibahara on Wednesday on suspicion of fabricating 180 million yen worth of company contracts to finance a failing design firm operated by one of Chiba's friends.