OSAKA (Kyodo) Prosecutors demanded five years in prison Friday for former Nova Corp. President Nozomu Sahashi, who stands charged with embezzling ¥320 million in funds for employment benefits shortly before the giant language school chain went bankrupt in 2007.
"I deeply apologize. Everything falls under my responsibility," Sahashi, 57, said as his Osaka District Court trial opened.
The court plans to hand down its ruling on Aug. 26.
Sahashi admitted diverting the cash to refund tuition fees to customers who were canceling lesson contracts, stating he was under financial restraints.
His counsel pleaded not guilty, saying the defendant had no intention of using the money for unlawful gains.
Sahashi stands accused of diverting about ¥320 million from an employment benefits fund on July 20, 2007, transferring the money to the bank account of an affiliate.
All of the misappropriated money was used for reimbursement.
Nova collapsed in October 2007, leaving thousands of Japanese and foreign employees jobless and its students stuck with worthless lesson tickets.
Nagoya-based G.communication Co. took over some of its schools in November that year.