Nozomu Sahashi
Encyclopedia
is the founder of the now-defunct Nova Corporation
, previously the major eikaiwa
(private school for conversational English
) provider in Japan. After graduating from high school, Sahashi went to Paris to attend university and majored in physics although it took him five years to complete a two-year course. The award status of his degree is unknown.
in 1981 with two foreign English teachers. He is the inventor of Nova's particular teaching method, "The NOVA System Concept", which he patented. The Concept is perhaps most comparable to the direct method
of language instruction, although Sahashi's method pivots on the interaction with and the repeating of an instructor who was a native speaker
. Sahashi thought a native speaker's voice would alleviate the difficulty of the average Japanese brain to distinguish English from background noise, as Japanese and English languages evoked different brain wave patterns. Sahashi had also patented a video phone camera device, a telephone interpretation (translation) system and an at-home medical examination system which provides a virtual consultation room, a virtual waiting room, a virtual nursing room and a virtual individual conversation room depending upon the desired operation although the system does not provide for actual treatment.
According to the Daily Yomiuri, Sahashi made 159 million yen in 2006, even though his company lost 2.9 billion yen. The Mainichi Shimbun
reported that Sahashi and his family's stock in the company rapidly declined over a two week period in September 2007, from holdings of 70% to 20%. It is believed this was done without filing a legally required report. A possible criminal complaint will be filed with legal authorities by receivers for Nova if it is proven Sahashi sold the stock without first filing the required report with authorities. In 1997, Sahashi paid 900 million yen in taxes, the fifth-highest paying taxpayer in the country.
In February 2008, police announced they were investigating Sahashi for aggravated breach of trust
for using his position to reap profits for his affiliated company, Ginganet, which he also controlled. Ginganet sold the TV-phone sets system to Nova in addition to leasing the Ginganet-managed server for the video-phone lessons. The investigation revealed that Ginganet had illicitly received around 500 million yen in profits from Nova for the use of the server. The bankruptcy administrator had also earlier noted that the price of the TV-telephone devices Ginganet charged Nova was unreasonably high, which could have resulted in Nova losing several billion yen.
In June 2008 police also announced they were investigating Sahashi for possible embezzlement
in the course of business for his ordering the transfer of the entire balance of a separately managed employee fund to a Nova business account to allow the payment of refunds to students. Sahashi, who owned the affiliate firm that handled the money transfer, did so in July 2007 to cover operating costs without the approval of employees. Nova employees had made monthly contributions from their pay to fund a mutual aid organization
that covered the costs of business trips and occasions of congratulations or condolence. Rarely used, it had an accumulated balance of 300 million yen at the time of the transfer.
On the same day that investigators raided Nova Kikaku's former headquarters, Sahashi along with former president and accounting manager of Nova Kikaku, Toshihiko Murata, were arrested on June 24, 2008 and questioned about misappropriation of funds. While Sahashi acknowledged that the fund was under his control he denied any wrongdoing and on July 30, 2008 he announced his intention to plead "not guilty." Murata, reputed to be Sahashi's right-hand man, reportedly admitted to allegations of embezzlement in the conduct of business. On August 26, 2009 Sahashi was found guilty of embezzlement and sentenced to three and a half years of imprisonment with hard labor.Later, his sentenced was reduced to two years.
as , which Saruhashi saw as deliberately emphasizing the first character in his name (猿), which means "monkey." The next day he announced to the staff that his surname was henceforth Sahashi.
Nova (eikaiwa)
Nova was the largest eikaiwa school in Japan until its widely publicized collapse in October 2007. Before its bankruptcy, Nova employed approximately 15,000 people across a group of companies that supported the operations of and extended out from the "Intercultural Network" of its language schools...
, previously the major eikaiwa
Eikaiwa
or often shortened to , are English conversation schools, usually privately operated, in Japan. It is a combination of the word and.Although the Japanese public education system mandates that English be taught as part of the curriculum from fifth grade, the focus is generally on English grammar...
(private school for conversational English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
) provider in Japan. After graduating from high school, Sahashi went to Paris to attend university and majored in physics although it took him five years to complete a two-year course. The award status of his degree is unknown.
Founding
Sahashi spent several years jobless after returning from France before founding NovaNova
A nova is a cataclysmic nuclear explosion in a star caused by the accretion of hydrogen on to the surface of a white dwarf star, which ignites and starts nuclear fusion in a runaway manner...
in 1981 with two foreign English teachers. He is the inventor of Nova's particular teaching method, "The NOVA System Concept", which he patented. The Concept is perhaps most comparable to the direct method
Direct method
Direct method may refer to*Direct method for learning a foreign language*Direct method as opposed to iterative method...
of language instruction, although Sahashi's method pivots on the interaction with and the repeating of an instructor who was a native speaker
Native Speaker
Native Speaker is Chang-Rae Lee’s first novel. In Native Speaker, he creates a man named Henry Park who tries to assimilate into American society and become a “native speaker.”-Plot summary:...
. Sahashi thought a native speaker's voice would alleviate the difficulty of the average Japanese brain to distinguish English from background noise, as Japanese and English languages evoked different brain wave patterns. Sahashi had also patented a video phone camera device, a telephone interpretation (translation) system and an at-home medical examination system which provides a virtual consultation room, a virtual waiting room, a virtual nursing room and a virtual individual conversation room depending upon the desired operation although the system does not provide for actual treatment.
Financial crisis and downfall
Sahashi was the company's long standing President and CEO until 2007. Following governmental restrictions and a financial crisis in 2007, Sahashi was removed as president by an emergency board meeting for failing to adequately explain his "opaque way of fundraising and negotiating with potential business alliance partners.".According to the Daily Yomiuri, Sahashi made 159 million yen in 2006, even though his company lost 2.9 billion yen. The Mainichi Shimbun
Mainichi Shimbun
The is one of the major newspapers in Japan, published by .-History:The history of the Mainichi Shimbun begins with founding of two papers during the Meiji period. The Tokyo Nichi Nichi Shimbun was founded first, in 1872. The Mainichi claims that it is the oldest existing Japanese daily newspaper...
reported that Sahashi and his family's stock in the company rapidly declined over a two week period in September 2007, from holdings of 70% to 20%. It is believed this was done without filing a legally required report. A possible criminal complaint will be filed with legal authorities by receivers for Nova if it is proven Sahashi sold the stock without first filing the required report with authorities. In 1997, Sahashi paid 900 million yen in taxes, the fifth-highest paying taxpayer in the country.
Criminal investigations and arrest
Sahashi came under scrutiny almost immediately after the collapse of Nova when court appointed administrators of the company allowed the media inside the president's luxury suite at Nova's administrative headquarters in Osaka to show "an example of (Sahashi) using the company to benefit himself." The office, a 330-square-meter executive suite on the 20th floor, housed a red-carpeted reception room, private quarters including a dining room with a large-screen TV, a bathroom with sauna, a Japanese-style tea room and a room with a double bed. Sahashi immediately submitted a petition to a local court rebutting allegations that he had used company assets to benefit his own wealth and lifestyle.In February 2008, police announced they were investigating Sahashi for aggravated breach of trust
Breach of Trust
Breach of Trust is a Canadian alternative rock band originally from La Ronge, Saskatchewan. The band currently consists of vocalist Marty Ballentyne, guitarist Donovan Bruyere, bass guitarist Colin Cheechoo and drummer William Aubut...
for using his position to reap profits for his affiliated company, Ginganet, which he also controlled. Ginganet sold the TV-phone sets system to Nova in addition to leasing the Ginganet-managed server for the video-phone lessons. The investigation revealed that Ginganet had illicitly received around 500 million yen in profits from Nova for the use of the server. The bankruptcy administrator had also earlier noted that the price of the TV-telephone devices Ginganet charged Nova was unreasonably high, which could have resulted in Nova losing several billion yen.
In June 2008 police also announced they were investigating Sahashi for possible embezzlement
Embezzlement
Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....
in the course of business for his ordering the transfer of the entire balance of a separately managed employee fund to a Nova business account to allow the payment of refunds to students. Sahashi, who owned the affiliate firm that handled the money transfer, did so in July 2007 to cover operating costs without the approval of employees. Nova employees had made monthly contributions from their pay to fund a mutual aid organization
Benefit society
A benefit society or mutual aid society is an organization or voluntary association formed to provide mutual aid, benefit or insurance for relief from sundry difficulties...
that covered the costs of business trips and occasions of congratulations or condolence. Rarely used, it had an accumulated balance of 300 million yen at the time of the transfer.
On the same day that investigators raided Nova Kikaku's former headquarters, Sahashi along with former president and accounting manager of Nova Kikaku, Toshihiko Murata, were arrested on June 24, 2008 and questioned about misappropriation of funds. While Sahashi acknowledged that the fund was under his control he denied any wrongdoing and on July 30, 2008 he announced his intention to plead "not guilty." Murata, reputed to be Sahashi's right-hand man, reportedly admitted to allegations of embezzlement in the conduct of business. On August 26, 2009 Sahashi was found guilty of embezzlement and sentenced to three and a half years of imprisonment with hard labor.Later, his sentenced was reduced to two years.
Name change
News articles occasionally differ in the spelling/pronunciation of his last name. The confusion apparently began in 2002 when Nozomu Saruhashi became upset after seeing his name printed in an article phonetically rendered in katakanaKatakana
is a Japanese syllabary, one component of the Japanese writing system along with hiragana, kanji, and in some cases the Latin alphabet . The word katakana means "fragmentary kana", as the katakana scripts are derived from components of more complex kanji. Each kana represents one mora...
as , which Saruhashi saw as deliberately emphasizing the first character in his name (猿), which means "monkey." The next day he announced to the staff that his surname was henceforth Sahashi.