The Osaka District Court on Wednesday sentenced the former president of collapsed English language school operator Nova, who went on trial facing charges of embezzling money from an employees’ fund, to three years, six months behind bars.

Handed the sentence was former company president Nozomu Sahashi, 57. According to the ruling, Sahashi transferred 320 million yen from the savings account of a mutual aid organization of Nova employees into a separate account. He then exchanged the amount for a check and deposited the money into the account of related company Nova Kikaku, thereby embezzling the funds, the ruling said.

During his trial Sahashi had admitted to the facts of the case, but said he had not been under the perception that he was forbidden from using the money. Lawyers for Sahashi argued that he was innocent, saying that he had no intention of illegally misappropriating the money, and that his actions did not constitute professional embezzlement.

On Aug. 19, Nova’s bankruptcy administrator filed a lawsuit in the Osaka District Court seeking about 2.136 billion yen in damages, saying that Sahashi repeatedly made unnecessary transactions, resulting in losses. It also filed a criminal complaint against Sahashi with the Osaka District Public Prosecutors Office, accusing him of aggravated breach of trust.

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The former president of Nova Corp., once Japan’s biggest English-language school operator, was found guilty of embezzlement and sentenced to prison by the Osaka district court, the Asahi newspaper said.

The court found today Nozomu Sahashi redirected 320 million yen ($3.4 million) from his employees’ welfare program to the company before its bankruptcy in 2007, the Asahi reported, citing judge Hiroaki Higuchi. Sahashi, 57, was given a sentence of three years and six months.

Sahashi founded Nova in 1981 and the Osaka-based company had more than 900 branches at its peak. Nova’s finances worsened after the government in June 2007 ordered it to suspend operations for violating rules on commercial transactions. It filed for bankruptcy protection in October that year.

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