Yuji Naka Receives Suspended Sentence for Insider Trading Violation
Yuji Naka is unlikely to be imprisoned for his involvement in insider trading, according to recent reports. A Tokyo judge named Madoka Hiruta has instead imposed a suspended prison sentence of 2.5 years on the co-creator of Sonic the Hedgehog, which will be deferred for four years. Additionally, Naka has been ordered to pay two fines totaling $1.1 million and $14,000 respectively. Judge Hiruta stated that Naka’s actions have undermined the integrity and reliability of the stock market, causing damage to investors’ confidence.
Naka pleaded guilty in March to violating Japan’s Financial Instruments and Exchange Act. While working at Square Enix, he bought shares in game studio Aiming before its collaboration with Dragon Quest Tact became public. He made about $150,000 in profit after selling his shares. The developer also faced insider trading charges when it bought shares in Ateam, the short-lived mobile battle royale game Final Fantasy VII: The First Soldier.
Two other former employees, Taisuke Sasaki and Fumiaki Suzuki, were also arrested for buying Aiming shares. Square Enix previously announced that it is cooperating with investigators and has implemented safeguards to prevent insider trading.
This kind of activity is not new in the technology industry. However, that is rare in the gaming world. and surprising when it involves a successful developer like Naka. While this doesn’t necessarily hurt the Sonic franchise, it certainly doesn’t help his reputation.
