Fuji News Network is reporting that Yuji Naka, former Sonic Team head, has been arrested for insider trading in relation to his time working at Square Enix.
While we do not yet have full details yet, FNN states that Naka allegedly purchased 2.8 million yen of shares in developer Aiming Inc. prior to the announcement of upcoming mobile game DRAGON QUEST TACT. Naka was one of three arrested for suspicion of insider trading, including another former Square Enix employee.
DEC. 7 UPDATE:
According to Japanese news outlet Asahi (by way of VGC), Naka has been arrested again for a second insider trading charge. Naka allegedly purchased 120,000 shares (worth about 144.7 million yen) of developer ATeam prior to the announcement of their partnership with Square Enix to develop Final Fantasy VII: The First Soldier.
We will continue to report as new details develop.