A former chief of the Public Security Intelligence Agency pleaded not guilty Wednesday to charges of fraud, denying that he masterminded an investment scam to swindle the pro-Pyongyang group Chongryon out of the ownership of its Tokyo headquarters building.

In his first trial session, Shigetake Ogata, 73, told the Tokyo District Court that his proposal to purchase the building was an attempt to support the de facto embassy of North Koreans residing in Japan. He stressed that he fully intended to pay ¥3.5 billion in exchange for the rights.

"I sincerely apologize about the outcome," Ogata told the court regarding the failed deal, slamming prosecutors for pursuing criminal liability.