The Tokyo High Court acquitted the former chairman of an English-language school Thursday on charges of embezzlement and breach of trust.
The Tokyo District Court had earlier handed down a 2 1/2 -year prison sentence to Takanobu Mori, the former chairman of Mori Gakuen, ruling that he unlawfully spent large amounts of tuition money on purchasing real estate and gambling.
"Though the real estate properties were registered either in the defendant's name or his wife's name, judging from the local tax and real estate registration system, he may have done so on behalf of Mori Gakuen," presiding Judge Toshio Yonezawa said.
The judge noted that Mori was making money both in the United States and Japan to found an English-language college. Considering such circumstances, there is not enough rational suspicion to support the lower court ruling that deemed the defendant's real estate deals as embezzlement for personal gain, he added.
He said Mori, 59, did not make any unlawful coverups regarding his remittances of money overseas. Although it was "doubtful" that the deals were approved by Mori Gakuen's board, Mori was usually in charge of most of the school's affairs, he said.
As for the breach of trust charges that Mori showed school checks to a Las Vegas hotel to guarantee loans for gambling, the judge said witnesses testifying for the defendant were credible sources who said the loans were not used for gambling.
The indictment alleged that Mori embezzled about 1.1 billion yen from Mori Gakuen between December 1986 and December 1987 to buy resort villas and gamble.