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Index (Atlus) under criminal investigation for fraudulent accounting

duckroll

Member
http://www3.nhk.or.jp/news/html/20130612/k10015238371000.html

The Japanese news is reporting that authorities have started criminal investigations into Index for suspicion of cooking their books via round-tripping. I've been saying for years that Index seems to be run by a bunch of scummy people and it looks like it's getting worse and worse. This doesn't really come as a surprise because they've had various run ins with financial authorities over the years. Last I checked, I recall that the people who run the company were mostly in the same family, so that probably makes it harder to root out dodgy business aspects. :p

Hopefully this doesn't have too much of a negative impact on Atlus game development at large, but I'll be really glad if the law finally catches up with those responsible once and for all if there is indeed criminal activity going on at the top. :p
 

SMT

this show is not Breaking Bad why is it not Breaking Bad? it should be Breaking Bad dammit Breaking Bad
How terrible, I guess this spells an untimely delay for Persona 5.
 

crinale

Member
http://www3.nhk.or.jp/news/html/20130612/k10015238371000.html

The Japanese news is reporting that authorities have started criminal investigations into Index for suspicion of cooking their books via round-tripping. I've been saying for years that Index seems to be run by a bunch of scummy people and it looks like it's getting worse and worse. This doesn't really come as a surprise because they've had various run ins with financial authorities over the years. Last I checked, I recall that the people who run the company were mostly in the same family, so that probably makes it harder to root out dodgy business aspects. :p

Hopefully this doesn't have too much of a negative impact on Atlus game development at large, but I'll be really glad if the law finally catches up with those responsible once and for all if there is indeed criminal activity going on at the top. :p

https://twitter.com/Atlus_jp/status/344690223239798785

Atlus already tweeted what's already planned to be released won't be affected.
That includes Dragon's crown demo kiosk planned in Japan.
 

duckroll

Member
https://twitter.com/Atlus_jp/status/344690223239798785

Atlus already tweeted what's already planned to be released won't be affected.
That includes Dragon's crown demo kiosk planned in Japan.

Obviously this will have no impact on games that are to be released in the next month or two. The main concern is how much longer this charade can last. Index Holdings was really poorly run, a shitty business trying to make money by dipping into as many entertainment industries as possible. When that went poorly, they sold off and closed stuff they no longer wanted, and merged Atlus into the main company changing it from a holding company into the main business company proper - Index. This is not unusual, but unfortunately the same dodgy people running the company previously continued to run this one. If they run it entirely to the ground and they all go to jail, it does leave a big question of what happens to "Atlus".
 

duckroll

Member
What is round tripping exactly?

The basic idea is that you move money around using other companies you own or are on friendly terms with or are owned by people you are friendly with by doing bogus investments or sales of assets. It's not illegal on its own in a private capacity, but for public companies it can be used to basically cover up losses or inflate profits in a short term through a longer term scheme. That's illegal because you're basically cooking your books.
 

RSLAEV

Member
I knew it! back when it was decided for no good reason that Persona 2 Eternal Punishment remake wasn't going to be localized and all of the video game journos who new why were conspicuously hush hush about the real reason I said "there's probably some skeezy yakuza shit goin' down"

Yeah I know PSP is dead in the west but still, whenever it came up in a podcast people were like 'mmmyeahhh yeah that's definitely not going to get localized for...reasons...'*awkward silence*
 

badgenome

Member
 

Squire

Banned
I knew it! back when it was decided for no good reason that Persona 2 Eternal Punishment remake wasn't going to be localized and all of the video game journos who new why were conspicuously hush hush about the real reason I said "there's probably some skeezy yakuza shit goin' down"

Yeah I know PSP is dead in the west but still, whenever it came up in a podcast people were like 'mmmyeahhh yeah that's definitely not going to get localized for...reasons...'*awkward silence*

Joke post?

I can't believe people have this hard a time accepting that game had almost non-existent sales prospects. I mean, wow.
 
Joke post?

I can't believe people have this hard a time accepting that game had almost non-existent sales prospects. I mean, wow.

Even I, and you know how crazy I am about Eternal Punishment dude, accept why it couldn't come here at this time. They even went the extra mile and provided us with a way to play Eternal Punishment and promptly got it working on Vita, that is commendable.
 

Watashiwa

Member
Could index be shut down over this?

It's very unlikely that they'd be shut down out of hand, but they could go into bankruptcy. If they did, they'll have to sell assets, including buildings, intellectual property, that sort of thing, in order to pay creditors. Remember what happened with THQ? That's a worst-case scenario, the near-complete dissolution of the company to pay back money they owe.

Really hope it doesn't go that far. That would be a nightmare for everyone on top of the nightmare that this has to be.
 
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