The man who was a co-creator behind one of the most iconic characters in gaming, Sonic, has been charged with insider trading and has received a hefty fine along with a prison sentence. He will have to pay a fine of 172 million Japanese Yen, which is equivalent to around $1.2 million, with the possibility of four years in prison. Yuji Naka had apparently been involved in insider trading during his tenure at Square Enix and was originally arrested in November of last year.
This all started when Yuji Naka acquired 10,000 shares in a company called Aiming, which is known for developing mobile games. The shares, when they were bought, were worth around $20,000. For the uninitiated, insider trading is when someone purchases stock in a company by using knowledge that is not publicly available, with the intention of making profits after the information does go public and the stock value goes up. So, buying stock in Aiming, knowing that its stock would rise after a certain announcement, is definitely illegal and qualifies as insider trading.
The co-creator of Sonic the Hedgehog was found guilty of violating Japan’s Financial Instruments and Exchange Act and has gotten off pretty easy, all things considered. He will spend two and a half years in prison, but only if certain conditions are met.
Sonic Creator Yuji Naka Sentencing & Fines
Naka will be put on probation for a four-year period, and if he commits any other offense during that time, he will then have to serve the aforementioned prison sentence. So, it is very unlikely he will actually go to prison, but the fine, on the other hand, is non-negotiable. This means Yuji Naka will have to pay $1.2 million regardless of his probationary stipulations.
None of the above information can be disputed, as Naka himself admitted to being guilty in March of this year, saying,
“There is no doubt that I knew the facts about the game before it was made public and bought the stock.”
The judge responsible for this case, Madoka Hiruta, said,
“Naka was a renowned developer, and so, gained access to confidential information. This has compromised the fairness and integrity of the stock market and eroded investors’ trust.”
