The president of an investment firm was cleared of fraud Wednesday by the Naha District Court in the first-ever ruling in a case where the defendant was subject to mandatory indictment by a group of court-appointed lawyers.
Presiding Judge Hideyuki Suzuki ruled Toshihiro Shirakami, 60, was not guilty of swindling two people out of ¥36 million in cash in 2002 through unlisted shares in a firm the lawyers, acting as prosecutors, alleged he knew was unlikely to become listed.
The court also dismissed allegations he bilked a third person out of ¥12 million as the statute of limitations had expired, without ruling on whether a crime had actually been committed.
Wednesday's ruling is likely to spark debate about the prosecution system introduced in May 2009 that makes it possible to bring formal charges against someone if a panel of citizens twice overrides a decision by prosecutors not to indict.
So far, former Democratic Party of Japan leader Ichiro Ozawa's trial is the most high-profile case resulting from a mandatory indictment. The trial, which concerns allegations Ozawa conspired with three former aides to falsify political funds reports, concludes Monday and a verdict is expected in late April.