18-month term sought for ex-Sogo chairman over hidden assets.

TOKYO, Nov. 18 Kyodo

Prosecutors on Thursday demanded an 18-month prison sentence for Hiroo Mizushima, former chairman of department store chain Sogo Co., for allegedly hiding 150 million yen in assets to obstruct a court-ordered seizure by creditors.

Mizushima, 92, denied the allegations during the opening hearing at the Tokyo District Court in November 2001, saying, ''I have never concealed assets with the aim to evade seizure.''

According to the indictment, Mizushima pretended that some 150 million yen of his assets were owned by his wife, though the money was withdrawn from his bank and investment trust accounts after the Sogo group applied for a court-mandated corporate rehabilitation procedure in July 2000.

He had guaranteed 11 billion yen of Sogo group debts to the then Industrial Bank of Japan and was afraid his assets would be seized, the indictment said.

Mizushima became Sogo's vice president in 1958 and later served as its president and chairman. He resigned as chairman in April 2000 to take responsibility for declining business, three months before Sogo applied for rehabilitation with 1.87 trillion yen in debts.

Sogo was certified by the court in January 2003 to have completed the legal rehabilitation procedures. Sogo and Seibu Department Stores Ltd. integrated their operations in June 2003 under a holding company.