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The Imperial Rayon Company corruption scandal (popularly known as the Teijin incident) was Japan's major interwar political bribery case. Compared to numerous Japanese corruption cases of the past century, the Teijin affair stands out as not only the most sensational of the pre-1945 era, but also the most important--perhaps because more than any other case, it has left an indelible mark on the public mind. Nevertheless, Japanese and foreign scholars have neglected this incident, which brought down an entire cabinet and produced a record-setting trial. The sixteen defendants, all prominent bureaucrats, ministers, and businessmen, were charged with illegally profiting from the sale of Imperial Rayon Company stock held by the Bank of Japan. In December 1937, after a more than two-year trial, all sixteen were found innocent when the judges declared that the case had been fabricated by the prosecution. Their verdict ranks in importance with the famous Otsu case judgment, the benchmark for j
