Moritomo Gakuen Ex - Chief And Wife Convicted
A court in Osaka has found a former school operator and his wife guilty of defrauding the central and local governments of school-related subsidies.
The former president of Moritomo Gakuen, Yasunori Kagoike, and his wife Junko were charged with defrauding the central government, Osaka Prefecture and Osaka City of some 170 million yen, or about 1.5 million dollars.
Yasunori Kagoike partially admitted to the charges, but also claimed the prosecution was trying to appease the administration of Prime Minister Shinzo Abe by shifting public attention to the investigation. Kagoike's wife denied all charges. The prosecution sought seven-year prison sentences for each of the defendants.
At the Osaka District Court on Wednesday, the presiding judge found the former president guilty of all charges and sentenced him to five years in prison.
His wife was found guilty only of defrauding the central government. She was given a three-year sentence, suspended for five years.
Before the sentencing, Junko was seen crying as she spoke to her lawyer. But the couple sat silently as they listened to the presiding judge.
Moritomo Gakuen made headlines in 2017, after it was found to have purchased state-owned land for a planned elementary school at a price far below market value.
As Prime Minister Abe's wife had been named honorary principal of the planned school, the transaction sparked allegations of favoritism.
The Finance Ministry also admitted to altering official documents on the land deal. The series of revelations prompted opposition parties to grill Abe in the Diet.
