Supplied coin for distrib Movie-Eye Entertainment
Troubled media fund operator Japan Digital Contents Trust was stripped of its trust business license by the Financial Services Agency on Wednesday.
JDC Trust fell below the 100 million yen ($1.1 million) capital reserve required by Japanese law in June, while coming under suspicion for mismanaging trust funds.
The agency ordered JDC Trust to suspend business for three months while it restructured. Regulators, however, decided that the company had little chance of regaining its financial footing and stripped it of its license.
The company has been charged with making three illegal transfers of $3.3 million from client trust accounts to pay off its own debts between December 2007 and June 2008.
Also, on June 1, former prexy Mitsuru Hirata was fired for buying a car with company funds without board approval and serving on the boards of other companies, in violation of Japanese law.
JDC Trust supplied coin to various Japanese distribs, including Movie-Eye Entertainment, Klockworx and Xanadeux, to acquire and release foreign pics in Japan.
JDC Trust also launched funds for toons, games and pic content. One fund raised coin for the slate of producer and distrib Cine Qua Non, including the 2006 smash “Hula Girls.”