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21 March 2025

Osaka Court Dismisses Damage Claim By Acquitted Businessman

Isumi Yamagishi sought compensation for alleged suffering from wrongful prosecution and interrogation tactics.

In a significant ruling on March 21, 2025, the Osaka District Court dismissed a damage claim against the state by Isumi Yamagishi, the former president of the real estate company Presans Corporation. Yamagishi, who was acquitted of charges of embezzlement in a breach of trust case, sought compensation for the pain and suffering he alleged resulted from his prosecution. The court ruled that the state bore no liability for damages.

Yamagishi, age 62, was arrested in 2019 alongside co-conspirators, including a former chairperson of a school corporation, for allegedly embezzling 210 million yen (approximately $1.9 million) as part of a land transaction. Throughout the process, Yamagishi denied involvement and claimed the allegations were fabricated. His conviction hinged heavily on testimony from a former subordinate, which was influenced by prosecutorial pressure according to the defense.

The Osaka District Court, presided over by Judge Masaharu Koda, indicated that although there were issues with the interrogation methods employed by the prosecution, the initial decision to arrest and charge Yamagishi was not entirely unreasonable. The court referenced Supreme Court precedents that maintain an acquittal does not automatically render an investigation illegal.

Prosecutor Daiben Tanishi was criticized for his aggressive interrogation techniques, which included comments like “Prosecutors are not fools” directed at witnesses. In this case, Yamagishi's legal team asserted that this behavior coerced the former subordinate into giving a statement that falsely implicated Yamagishi. They argued that this compromised the integrity of the evidence against him.

While acknowledging the troubling elements of the interrogation, Judge Koda ruled that the evidence was still sufficient enough to justify Yamagishi's arrest and indictment. The court noted, “It cannot be said that the decisions to arrest and indict were entirely unreasonable,” consequently denying the damage claim based on the Special Investigation Department’s oversight.

The prosecution’s case relied on the testimonies of several individuals, including other directors of the school corporation involved in the land sale, who were found guilty of related charges. Yamagishi's indictment was primarily influenced by these testimonies, which he argued were unreliable due to the pressure exerted during interrogations.

Furthermore, the court expressed concern over potential habitual negligence within the prosecutor's office, highlighting how the chief prosecutor had been informed that there were no problems with the investigation despite significant issues arising during the proceedings.

In the wake of the ruling, Yamagishi expressed dissatisfaction and indicated plans to appeal to the Osaka High Court. He stated that he aims to shed light on the violations committed during the investigation led by the Special Investigation Department.

After the court proceedings, Yamagishi and his defense team held a press conference where he reiterated his grievances and desire for justice. “The investigative practices used here raise serious ethical questions, and I am determined to pursue accountability,” Yamagishi asserted.

The deputy prosecutor of the Osaka District Public Prosecutors Office, Chizu Tanaka, responded to the ruling by affirming that the state’s position had been recognized and expressing commitment to ensuring proper interrogation protocols in the future. “We will continue to strive for appropriate implementation of interrogations,” Tanaka stated.

The ramifications of this case underscore critical issues regarding prosecutorial conduct and the balance of justice within the legal system in Japan. As Yamagishi prepares to challenge the ruling, the focus will remain on the intersection of legal ethics and the responsibilities of investigative authorities.

With a growing public interest in legal ethics and transparency in prosecutor's offices, this decision adds to the ongoing dialogue regarding the methods employed in criminal investigations and the implications for innocent individuals wronged by the system.