Japanese billionaire and gaming magnate Kazuo Okada, along with three others, has been indicted by the Philippines Department of Justice (DoJ) for the offense of “grave coercion” related to the physical takeover of the Okada Manila integrated resort. The indictment follows a series of events surrounding Okada’s reinstatement to corporate leadership and the subsequent dispute with Tiger Resort Leisure & Entertainment, Inc. (TRLEI). The DoJ resolution recommends filing charges against Okada and his associates, highlighting their alleged unlawful actions. If found guilty, the defendants could face a jail term ranging from one month and one day to six months.
Background:
The conflict arose after the Philippines Supreme Court ruled in favor of reinstating Kazuo Okada to his corporate positions following allegations of fund misappropriation. The court issued a status quo ante order (SQAO) to restore his position, which TRLEI disputed, questioning its applicability to their business.
Indictment and Allegations:
The DoJ resolution, dated August 25, accuses Kazuo Okada, Antonio “Tonyboy” Cojuangco, Dindo Espeleta, and Florentino “Binky” Herrera III of “grave coercion.” The resolution states that Okada’s actions to enforce the SQAO were deemed illegal, regardless of the merits of the court order. The group is accused of unlawfully taking control and possession of Okada Manila under the guise of implementing the SQAO, which lacked specific instructions on the actions they were authorized to undertake.
Legal Consequences and Okada’s Liability:
If convicted, the defendants could face imprisonment for the offense of “grave coercion” within the stipulated penalty range. The indictment document suggests that even though Kazuo Okada was not physically present during the events at Okada Manila, he is still held liable due to his prior knowledge and involvement. As the sole petitioner before the Supreme Court and the purported beneficiary of the takeover, Okada cannot claim ignorance and is considered liable for “grave coercion.”
Resolution and Impact:
The occupation of Okada Manila ended in September when the Philippine Amusement and Gaming Corporation (PAGCOR) withdrew its recognition of the board appointed by Kazuo Okada. This transition involved a brief physical confrontation between representatives of the opposing sides. TRLEI, the parent company of Okada Manila, expressed gratitude for the DoJ’s action and their commitment to pursuing justice for the victims of the takeover. They vowed to work with their legal team to ensure a favorable outcome in the case against the Kazuo Group.
Effects on Universal Entertainment and Okada Manila:
The Okada Manila dispute has had repercussions on Universal Entertainment’s planned listing on NASDAQ through a special purpose acquisition company (SPAC). The company announced a delay of up to one year for the listing due to the ongoing legal issues. Universal Entertainment has accused Kazuo Okada and his associates of various wrongdoing, including the destruction of contracts, unauthorized removal of documents, wrongful seizure of assets, and falsification of digital data.
The indictment of Kazuo Okada and three others for “grave coercion” in relation to the takeover of Okada Manila marks a significant development in the ongoing legal battle. The DoJ resolution highlights the alleged unlawful actions taken by the defendants and their violation of the law. TRLEI remains determined to seek justice and restore order within the company. The consequences of this indictment and the ongoing legal dispute will continue to impact Universal Entertainment’s plans for its NASDAQ listing and the future operations of Okada Manila.