Japanese pachinko king Kazuo Okada has scored big in the corporate tug-of-war over a posh casino hotel in Paranaque City after the Court of Appeals ordered the dismissal of the criminal cases filed against him for lack of merit.
In a 24-page decision dated December 9, 2021, the CA’s Sixteenth Division reversed and set aside the ruling of the Parañaque City Regional Trial Court, Branch 257, which earlier found merit to put Okada, the former chairman and chief executive officer of Okada Manila hotel resort, on trial for estafa.
The appellate court also quashed the lower court’s order of arrest against the pachinko king based on complaints by Tiger Resort Leisure and Entertainment Inc. (TRLEI), the Philippine firm that owns and operates the hotel and gaming company.
“Wherefore, the instant petition for certiorari is granted. The order dated 06 May 2019 and order dated 04 July 2019 in Criminal Case Nos. 2018-3100 to 3102 issued by the Regional Trial Court, Branch 257, Parañaque City are reversed and set aside, and the warrant of arrest issued against petitioner Kazuo Okada and Takahiro Usui are hereby recalled and quashed,” the CA said in a decision penned by Associate Justice Alfredo D. Ampuan.
“In view of the foregoing, we find that the lower court acted with grave abuse of discretion in issuing the warrants of arrest against petitioner and Usui despite the clear absence of probable cause against them,” the CA ruled.
“There are practical considerations to the dismissal as well, since the state will be spared from exerting its resources persecuting an innocent individual,” the appellate court said.
The CA said that Tiger Resort has the opportunity to seek recourse in a civil case if it truly believes that the disbursements were unauthorized.
“Unfortunately, it cannot insist on pursuing the instant criminal case against petitioner and Usui in light of the absence of probable cause to indict them for the crime,” the CA emphasized.
In June 2017, the TRLEI board unceremoniously booted out Okada from his post and removed him from the board along with TRLEI president and chief operating officer Takahiro Usui.
Subsequently, the board accused Okada of misappropriating TRLEI funds and went to court to compel him to account for the money.
Nearly three years ago in May 2019, Paranaque Regional Trial Court branch 257 judge Rolando How ruled against Okada, finding probable cause to prosecute him for estafa for alleged unauthorized disbursement of $3.1 million in TRLEI funds.
Consequently, the lower court also issued warrants of arrest for the Japanese businessman. Also ordered arrested was former TRLEI president/COO Usui.
In its ruling, the CA said the lower court committed grave abuse of discretion in issuing warrants of arrest against Okada and his associate despite the absence of probable cause.
“There was lack of probable cause to issue warrants of arrest because not all the elements of the crime of estafa was proved,” Ampuan said.
In particular, the CA said Okada did not receive the money – in the form of consultancy fees and salary – in trust with the duty to return them to TRLEI.
“There was no misappropriation or conversion by Mr. Okada of the money received,” the decision said as concurred by CA Associate Justices Pedro Corales and Bonifacio Pascua.
The CA explained that the amount paid to Okada was not entrusted to him for safekeeping or administration. Rather, it was paid to him by TRLEI in consideration for services rendered as consultant and CEO, it further said.
Accordingly, the CA ruled that the criminal cases against Okada and Usui are dismissed and the warrants for their arrest recalled and quashed.