index-corporation
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Report: Former Index president arrested for fraud
Masami Ochiai, former president and CEO of Atlus parent company Index Corporation, has been arrested by Japanese authorities who claim Ochiai fraudulently boosted Index's financial records prior to its sale to Sega Sammy Holdings last year. News of the arrest comes from Japanese business periodical Nikkei (via a Gematsu translation), which claims that the 4 billion yen profit shown on Index's records of the third fiscal quarter of 2012 doesn't actually exist. Investigators believe Ochiai fraudulently reported business transactions that never occurred in order to avoid the removal of Index from JASDAQ (the Japanese analogue to the American NASDAQ stock exchange). Unfortunately for Index, even that profit (the first Index had shown in six years), couldn't save the company from bankruptcy, and it was while sorting out that mess that authorities picked up on Ochiai's reported attempts to make his company look a few million yen better than it otherwise would have. Though Ochiai claims that he has "not been engaging in fraud," investigators plan to delve deeply into Index's financial records under the belief that Ochiai wasn't alone in his deception, and that these financial hijinks were systematically plotted out by Index management. [Image: Sega]
Sega reveals plan to make Atlus into Atlus once more
In its first major move since acquiring the company in 2013, Sega has revealed plans to split Index Corporation into two separate divisions, according to a Gematsu translation of a Sega press release. Come April 1, Index Corporation will cease to exist and in its place will be two new divisions of the overarching Sega corporate umbrella. Atlus will continue to create the sort of quirky, Japanese games the company is most famous for, while Index Corporation - this new division borrows its name from the now-split subsidiary - will handle things like advertising and content distribution. Sega managing director Yukio Sugino will serve as representative for Atlus while Yasuhiko Hamada, Index executive vice president, will lead Index Corporation. Additionally, Index Digital Media, Inc. (Index Corporation's international arm) will be rebranded Atlus USA Inc. According to Sega, this corporate restructuring will allow both Atlus and Index Corporation to function more smoothly, yet remain independent to create the kind of content that made Atlus an attractive acquisition for Sega in the first place. [Image: Sega]
