Ogata to plead innocent in Chongryon fraud trial

Former intelligence chief Shigetake Ogata will plead innocent when he stands trial over his alleged involvement in fraud involving Chongryon's headquarters property, retracting his earlier admission during questioning by prosecutors, sources said.

Shigetake Ogata KYODO PHOTO

The move will lead to a showdown between the prosecutors and defense as both camps investigate the motives and criminal intent behind an unusual case in which the supposed victim, the pro-Pyongyang General Association of Korean Residents in Japan, or Chongryon, has rebutted allegations that it was defrauded, believing Ogata was sincere in buying the site to keep the group running.

When Ogata, 73, will stand trial has yet to be decided.

His alleged accomplice, Tadao Mitsui, the 73-year-old former president of a real estate company, is also expected to categorically deny the charges against him, the sources said. Mitsui has also been indicted.

The fraud came to light in June when it was revealed that registration of the ownership of Chongryon's land and building had been transferred to Ogata's side.

Prosecutors arrested Ogata, a prosecutor-turned-lawyer who formerly headed the government's Public Security Intelligence Agency, and Mitsui on June 28 on suspicion of fraud connected to an alleged bogus ¥3.5 billion deal to acquire the premises of the group's head office without any intention of making a payment.

Chongryon at the time was looking for a buyer for the building and premises of its headquarters in Tokyo in an attempt to prevent them from being seized as part of the state-run Resolution and Collection Corp.'s debt-recovery efforts.

On July 18, prosecutors served fresh warrants against Ogata and Mitsui for allegedly defrauding Chongryon of ¥484 million.

Ogata denied the charges when he was first arrested in June but later owned up to them just before the prosecutors filed an additional criminal charge against him in August.

However, having apparently reviewed the facts and circumstances, Ogata has decided to plead innocent and tell the court that he had no intention of deceiving others, according to the sources.

Ogata is now being held at the Tokyo Detention House.

After the dubious transfer registration came to light on June 12, Ogata told reporters he had concluded the deal so that he could help maintain the operations of Chongryon to guarantee the protection of its affiliates' rights.

Ogata has denied that the deal was fake and claimed he intended to secure funds for it. Sources said Ogata is likely to argue along these lines in court.