Sales company alleges Shinji Saitō fled with proceeds, sparking a financial dispute

“No matter how long we waited, the money was never deposited.”

“When he was referred to prosecutors for non-consensual intercourse and non-consensual indecency, he tearfully told us, ‘I have no way to make a living. I’m really struggling.’ Seeing him like that, we felt sorry for him. So, hoping it could at least help cover his living expenses, several of us volunteered to establish Company T, a Baumkuchen sales business. But he trampled on that goodwill. We cannot forgive him.”

A, a current employee of Company T, which operates the Baumkuchen sales business, spoke to the reporter while struggling to contain his anger.

In October of last year, former Jungle Pocket member Shinji Saitō (43) had his contract terminated by Yoshimoto Kogyo, making a return to the public stage extremely difficult. It is widely known that starting this April, he has been making a living by selling Baumkuchen.

But Saitō has betrayed Company T—the very people who created the business to help him rebuild, and who were supposed to be his benefactors and support.

Holding up the outsourcing contract, A explains:

“Our agreement stated that the profits from Baumkuchen sales would be split equally between Company T and Saitō. Sales were actually going well. However, the approximately 1.6 million yen he earned on October 8 and 9 at events in Fukuoka—as well as the petty cash kept in the register—was never deposited into the company account.

The system was: the Fukuoka sales proceeds would first be transferred to Saitō’s personal account, and from there he would send the funds to Company T’s account. Saitō was responsible for reporting sales, and Company T handled the accounting. After deducting expenses from the sales, half of the profit would be paid out as his compensation at the end of the following month. That was the arrangement. But even after repeated reminders, he didn’t respond. And he still has the 1.6 million yen. From our perspective, it’s the same as if he ran off with the money.”

Why didn’t Saitō transfer the proceeds? Later, his attorney contacted Company T with the following explanation:

“A portion of the compensation that should have been paid to Mr. Saitō has not been paid, and there is concern that future payments may also be delayed. Therefore, until this issue is resolved, Mr. Saitō is holding on to the sales proceeds.”

A responds angrily:

“There has never been any unpaid compensation to Saitō. On the contrary—we even paid him advances when he was struggling financially. Because the profits are split after deducting expenses, he was supposed to provide receipts for any advance payments. But he never submitted them. What he says and what he does are completely different.”

What Saitō did afterward only made things worse for Company T’s employees.

“Despite the ongoing financial dispute, starting at the end of October, Saitō began purchasing Baumkuchen on his own, without going through Company T, and selling it privately. The product was the same—the only things he changed were the name and packaging design. It’s malicious.” (A)

It sounds unbelievable, but Company T responded to FRIDAY’s inquiry as follows:

“It is true that a financial dispute has arisen with Mr. Saitō. We plan to file a criminal complaint with the police for embezzlement (gyōmu jō ōryō).”

Saitō’s side also prepares for a full-scale fight

When asked about the allegation that he had run off with the money, Saitō—accompanied by his attorney—responded:

“It is true that I still have about 1.6 million yen from the Baumkuchen sales in Fukuoka. However, that is because my compensation for August and September has not been paid. I grew increasingly worried that even if I transferred the sales proceeds to Company T, they would still not pay my compensation. Therefore, I decided not to transfer the 1.6 million yen until the issue is resolved. The only money I have is the sales proceeds. I do not have the register’s petty cash.”

His attorney added:

“Aside from the October sales in Fukuoka, all Baumkuchen proceeds had been managed by Company T. However, Company T has not disclosed the breakdown of sales or expenses since August. Without knowing these details, we cannot determine the amount of compensation owed to Mr. Saitō. The problem lies before the question of non-payment. We have requested full disclosure of sales and expense details, but Company T has not complied.

Therefore, based on the right of simultaneous performance (which allows one party to withhold performance until the other fulfills their obligation), we are keeping the sales proceeds in Mr. Saitō’s possession. He is simply holding the money—not embezzling it. There is no legal basis for accusing Mr. Saitō of wrongdoing.”

Regarding claims that he began selling the same Baumkuchen privately from the end of October, the attorney responded as follows: (continues)

The Baumkuchen Saitō is currently selling. Its name and packaging design differ from the product he sold together with Company T.

Saitō’s attorney argues:

“There is no non-compete clause in the contract with Company T. In addition, he changed the product name to avoid confusion with the Baumkuchen sold jointly with Company T. Therefore, there is no legal problem.”

Even as he maintains a stance of full resistance, Saitō expressed his feelings toward Company T at the end of the interview:

“They started the Baumkuchen business for my sake, and thanks to that, I was able to appear in public again. I am grateful to Company T for that. That’s why I tolerated the unpaid compensation for a while. But as time went on, I grew increasingly unsure—how long would I have to keep waiting? Would the non-payment continue? That anxiety kept growing.”

The claims of both sides directly contradict each other. What is certain is that Saitō, once again, has found himself embroiled in a major dispute. His road to recovery still looks steep.

—from “FRIDAY” November 28 / December 5, 2025 combined issue