Tokyo Barrister: Start the law firm bankruptcy

Chapter 947 Kitahara's Counterattack

Everyone in the courtroom unconsciously held their breath.

Kitahara stood up from his seat, saying, "The evidence presented by the prosecutor is inconsistent with the facts stated in the indictment."

"The contract in question stipulates that the prospective investor receives ants from the company for breeding and pays a breeding deposit to the company. This deposit is not an investment, but a deposit paid in advance to prevent the ants from dying due to lack of care after receiving them."

“Don’t underestimate the power of ant reproduction,” Kitahara said. “Ant reproduction is carried out by the queen. Taking care of the queen is no easy task. The ventilation, temperature, and humidity of the anthill must all be maintained at suitable levels.”

"Furthermore, farmers must be careful to avoid leaving human scent in the ant nest. If too much human scent is left, it may cause the ant colony to go berserk and attack the queen."

“It is a normal transaction arrangement for prospective investors to receive ants from the company at zero cost and pay a corresponding deposit. This deposit should not be interpreted as an investment payment.”

Kitahara produced a company file:
"In fact, among the evidence presented by the prosecutor's office itself, there were more than a thousand citizens whose failure to properly care for the queen ant led to the ant colony going berserk, attacking each other, and the queen ant dying. In response, the company confiscated the deposit in accordance with the relevant contract provisions, without repurchasing or making any so-called repayment of principal and interest."

"These actions of confiscating the deposit clearly demonstrate that the company did not treat the deposit as investment funds!"

"From the very beginning, the prosecutor's office's characterization of this matter was based on preconceived notions! They assumed it was an investment activity and then classified the deposits paid by the farmers as investment funds as well. This contradicts the evidence on file!"

It sounded like a "sizzling" sound.

The young lawyer's counterattack seemed to tear a flaw from the prosecutor's impeccable evidence presented that day.

The prosecutors present quickly flipped through the case files.

They then found the record of the forfeiture of the deposit that Kitahara had mentioned.

That's absolutely true!

Shanhu Capital once confiscated the deposits of more than a thousand victims due to failed aquaculture operations!

The prosecutor's charges against Aso began to crack.

Though small, it has already appeared!

Qiu Hui quickly flipped through the files, realizing she had overlooked the fact that Shanhu Capital had confiscated the deposits of over a thousand investors. However, before Qiu Hui could figure out how to respond—

Kitahara's voice rang out again:
"As the defense attorney just said, breeding ants is not a simple matter. There are actually two models of ant farming in question: one is contract farming, and the other is rental farming. The two models are different."

"The so-called 'contract farming' refers to farmers purchasing ants, with ownership of the ants belonging to the farmers, and then Shanhu Capital handling the raising. Here, the farmers pay for the ants, and Shanhu Capital, after deducting the raising fee, pays the farmers the proceeds from the sale of the raised ants."

"The rectification notice issued by the Tokyo Regional Financial Services Bureau, as alleged by the prosecutor's office, actually targets the 'management' model. That is, the local regulatory agency only determined that the 'management' model is suspected of illegal fundraising. In this regard, Mountain Lake Capital has, in accordance with the instructions of the local financial services bureau, suspended all 'management' contracts with its clients within 60 days."

"And the next step is the rental-to-own model."

"The so-called rental and breeding model, as mentioned earlier, involves farmers paying a deposit to the company and receiving ants to raise."

"The key difference between contract farming and rental farming lies in who actually engages in the farming activities. In the contract farming model, the company conducts the farming activities, and the farmers only pay for the ants. Therefore, it's understandable that the contract farming model is classified as illegal fundraising." "However, in the rental farming model, it is the farmers who are actually engaged in the farming activities."

"The company's returns to farmers are compensation for their farming activities. This is income from labor, not interest income!"

"Based on the case files—"

Kitahara raised his voice further, "The Tokyo High Public Prosecutors Office failed to distinguish between the business models involved in the case. They confused the difference between the foster care model and the rental model! The deposits involved in the case were not the farmers' investment funds, but rather a pledge to ensure the normal operation of the ant farming! The payments to the farmers were their labor remuneration for their farming activities!"

"The Tokyo High Public Prosecutors Office's determination that the activities in question constituted illegal fundraising is based on a flawed understanding of the business model! It contradicts the evidence on file!!"

Kitahara's words immediately shocked everyone present.

In particular, Kitahara pointed out the difference between the foster care model and the rental model.

Many prosecutors were initially confused when they heard Kitahara's arguments. They quickly flipped through the rectification notices previously issued by the Tokyo Regional Financial Services Bureau.

Indeed, the rectification notice is just as this lawyer said—

The only requirement is to rectify the foster care model.

However, no determination has been made as to whether the rental-based care model constitutes illegal fundraising!
Many prosecutorial assistants were sweating bullets. This was because, when preparing the case materials, they hadn't conducted a detailed study of Shanhu Capital's ant farming business model. They had simply assumed that investors bought ants from the company, and then the company would buy back the ants from the investors. They had formed this vague understanding.

There's no distinction made between foster care and rental care.

That young lawyer named Kitahara actually discovered a loophole in the prosecution's chain of evidence and began his attack!

The reporters at the scene were also stunned by Attorney Kitahara's remarks. They quickly jotted down the lawyer's comments in their notebooks: Shanhu Capital's rental-based model was not illegal fundraising; the payments to the tenants were labor remuneration, which, legally, could not be considered interest.

Every point is a direct confrontation with the prosecutor's office!

Qiu Hui kept flipping through the case materials. The lawyer's remarks far exceeded her expectations. She had to admit, she had miscalculated. Qiu Hui hadn't researched Shanhu Capital's business model to this extent.

However, Qiu Hui knew that the prosecutor's office absolutely could not lose this case. With so much manpower and resources invested, failure was simply not an option!

This is a battle for the prosecutor's office's honor!
After briefly gathering her thoughts, Qiu Hui concluded that the lawyer in front of her was trying to mislead her.

Regardless of whether it's foster care or rental care, in the end, it's all just a smokescreen.

If you dwell on these things, you'll only fall into their trap.

The real purpose of this behavior is to promise high returns and attract funds.

Akiho immediately stood up and launched a counterattack against Kitahara...

(End of this chapter)