Yoshiaki Tsutsumi
Encyclopedia
Yoshiaki Tsutsumi is a Japan
ese businessman. During the Japanese economic bubble
in the late 1980s, Tsutsumi was the wealthiest person in the world for a brief period due to his extensive real estate
investments through the Seibu Corporation
, which he controlled. However, as a result of a series of scandals and his 2005 arrest, his net worth
has fallen to such an extent that he was taken off the Forbes
list of billionaires in 2007.
In 1964, the thirty-year-old Yoshiaki Tsutsumi inherited control of the Seibu Corporation upon the death of the company founder, his father Yasujirō Tsutsumi
. Most observers had expected the designated successor to be his elder half-brother Seiji Tsutsumi. Seiji instead inherited the Seibu department stores, which he subsequently parlayed into the Credit Saison
empire. Perceived rivalry between the two brothers' fiefdoms provided fodder for the popular press.
As chairman, Tsutsumi focused on developing and expanding the vast land holdings inherited from his father. At one point, his companies owned one sixth of all the land in Japan. He also initiated new ventures into the sports market, building a stadium in the greater Tokyo area
to house a professional baseball team, the Seibu Lions
. He was instrumental in the successful Nagano bid for the 1998 Winter Olympics
.
The January 17, 2005 edition of The Wall Street Journal
made an investigation on Tsutsumi and the Seibu Corporation public to American
readers. According to the paper, the Seibu corporation's headquarters were raided by police
, who allegedly found evidence of several Japanese business law-breaking incidents. The police, for example, claimed that the company declared that their major shareholders accounted only for 64 percent of the company's shareholders, but that, in reality, the major shareholders at Seibu actually owned 88 percent of the company's shares. Such bogus ownership statement is suspected to be illegal falsification. Major shareholders can only get up to 80 percent of a Japanese company's stock to be listed on the Tokyo Stock Exchange
.
That scandal was originally opened in 2002 in Japan, after which Mr. Tsutsumi was ordered by a court out of the company, but he remained in it, although at a much less paid employment.
On March 3, 2005, Tsutsumi was arrested on suspicion of violation of securities trading law. Tsutsumi pleaded guilty, and on October 27, 2005, the Tokyo District Court sentenced him to 30 months in prison, suspended for 4 years, and a fine of 5 million yen.
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese businessman. During the Japanese economic bubble
Economic bubble
An economic bubble is "trade in high volumes at prices that are considerably at variance with intrinsic values"...
in the late 1980s, Tsutsumi was the wealthiest person in the world for a brief period due to his extensive real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
investments through the Seibu Corporation
Seibu Railway
is a conglomerate based in Tokorozawa, Japan, with principal business areas in railways, tourism and real estate. Seibu Railway's operations are concentrated in northwest Tokyo and Saitama Prefecture; the name "Seibu" is an abbreviation of "west Musashi," referring to the historic name for this area...
, which he controlled. However, as a result of a series of scandals and his 2005 arrest, his net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
has fallen to such an extent that he was taken off the Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
list of billionaires in 2007.
In 1964, the thirty-year-old Yoshiaki Tsutsumi inherited control of the Seibu Corporation upon the death of the company founder, his father Yasujirō Tsutsumi
Yasujiro Tsutsumi
was a Japanese entrepreneur, politician, and business tycoon who founded a dynasty which became the wealthiest, most influential family of 20th century Japan.-Peasant farmer :...
. Most observers had expected the designated successor to be his elder half-brother Seiji Tsutsumi. Seiji instead inherited the Seibu department stores, which he subsequently parlayed into the Credit Saison
Credit Saison
Credit Saison Co., Ltd. , commonly known as Credit Saison or simply Saison, is a Japanese financial services company affiliated to Mizuho Financial Group. Founded in 1946, Credit Saison is the 3rd largest credit card issuer with over 20 million cardholders in Japan, behind JCB and Visa Japan.-...
empire. Perceived rivalry between the two brothers' fiefdoms provided fodder for the popular press.
As chairman, Tsutsumi focused on developing and expanding the vast land holdings inherited from his father. At one point, his companies owned one sixth of all the land in Japan. He also initiated new ventures into the sports market, building a stadium in the greater Tokyo area
Greater Tokyo Area
The Greater Tokyo Area is a large metropolitan area in Kantō region, Japan, consisting of most of the prefectures of Chiba, Kanagawa, Saitama, and Tokyo . In Japanese, it is referred to by various terms, including the , , and others....
to house a professional baseball team, the Seibu Lions
Seibu Lions
The are a professional baseball team in Japan's Pacific League based west of Tokyo in Tokorozawa, Saitama. Before 1979, they were based in Fukuoka in Kyushu. The team is owned by a subsidiary of Prince Hotels, which in turn is owned by the Seibu Group...
. He was instrumental in the successful Nagano bid for the 1998 Winter Olympics
1998 Winter Olympics
The 1998 Winter Olympics, officially the XVIII Olympic Winter Games, was a winter multi-sport event celebrated from 7 to 22 February 1998 in Nagano, Japan. Seventy-two nations and 2,176 participans contested in seven sports and 72 events at 15 venues. The games saw the introduction of Women's ice...
.
The January 17, 2005 edition of The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
made an investigation on Tsutsumi and the Seibu Corporation public to American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
readers. According to the paper, the Seibu corporation's headquarters were raided by police
Police
The police is a personification of the state designated to put in practice the enforced law, protect property and reduce civil disorder in civilian matters. Their powers include the legitimized use of force...
, who allegedly found evidence of several Japanese business law-breaking incidents. The police, for example, claimed that the company declared that their major shareholders accounted only for 64 percent of the company's shareholders, but that, in reality, the major shareholders at Seibu actually owned 88 percent of the company's shares. Such bogus ownership statement is suspected to be illegal falsification. Major shareholders can only get up to 80 percent of a Japanese company's stock to be listed on the Tokyo Stock Exchange
Tokyo Stock Exchange
The , called or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies...
.
That scandal was originally opened in 2002 in Japan, after which Mr. Tsutsumi was ordered by a court out of the company, but he remained in it, although at a much less paid employment.
On March 3, 2005, Tsutsumi was arrested on suspicion of violation of securities trading law. Tsutsumi pleaded guilty, and on October 27, 2005, the Tokyo District Court sentenced him to 30 months in prison, suspended for 4 years, and a fine of 5 million yen.
External links
- Forbes.com: Forbes World's Richest People
- Downer, Lesley (1994). The Brothers: the hidden world of Japan's richest family. New York: Random House, Inc. ISBN 0-679-42554-3.
- Disgraced billionaire gets fine, not time asahi.com. October 28, 2005.
- Tycoon Tsutsumi found guilty of fraud Japan Times Online. October 28, 2005.
- Billonaires richer, Russia, India rise: Forbes Reuters March 8, 2007.