AI Developer Alt Ex-Execs Arrested over Window-Dressing

Tokyo, Oct. 9 (Jiji Press)–The Tokyo District Public Prosecutors Office arrested Kazutaka Yonekura, 48, the founder of Japanese artificial intelligence developer Alt Inc., and three others on Thursday on suspicion of violating the financial instruments and exchange law by window-dressing the company’s earnings. The three others include Yusuke Hioki, 34, a former president of the Tokyo-based company, which went public on the Tokyo Stock Exchange’s Growth section for startups in October 2024. After the company was found in July this year to have overstated its sales by some 11.9 billion yen through fictitious round-trip transactions, it was delisted from the TSE the following month. Yonekura later resigned as president, and the company filed for bankruptcy protection with Tokyo District Court under the civil rehabilitation law. In April, the Securities and Exchange Surveillance Commission launched a compulsory investigation into the company over the alleged window-dressing. The special investigation squad of the prosecutors office later questioned company officials voluntarily to probe their involvement in the fraud. END [Copyright The Jiji Press, Ltd.]