Ex-NTT Chief Found Guilty in Recruit Scandal : Japan: The trial was seen as a test of what constitutes a bribe in a country where gift-giving is common in business.

A former chairman of Japan’s largest company was convicted today of bribery in the widespread influence-buying Recruit scandal, which had played a role in bringing down two prime ministers.

The Tokyo District Court ordered a two-year suspended prison term and a $175,000 fine for Hisashi Shinto, 80, for accepting an offer of prelisted stock that seemed certain to rise in value, court officials said.

The non-jury trial of the former Nippon Telegraph & Telephone Corp. head has been closely watched in Japan as a court test of what constitutes a bribe in this country, where gift-giving is a common practice in business and politics.

“Considering NTT’s mission to serve the public, the defendant’s position and the extent of influence caused by the scandal, (Shinto) bears serious responsibility,” presiding Judge Ken Toyota said.

NTT Chairman Masashi Kojima said in a statement that the company “again apologizes for causing trouble to the public.”

Shinto’s conviction is the latest development in the two-year-old scandal involving Recruit Co., an information conglomerate, that has resulted in five trials with 12 defendants, including politicians and government officials.

Two prime ministers--Noboru Takeshita and Sousuke Uno--and three Cabinet members resigned after being tainted by the Recruit affair or taking responsibility for election losses attributed to the scandal.

Hiromasa Ezoe, the former chairman of Recruit, was charged with bribery for allegedly selling stock in a real estate subsidiary, Recruit Cosmos, to about 160 influential politicians, businessmen and government officials before the shares went public in October, 1986.

Shinto was offered unlisted shares of Recruit Cosmos for $230,000 in September, 1986. He quickly sold them for $400,000 just after the stock went public, prosecutors said.

Shinto denied doing any special favors for Recruit.

The prosecution had alleged that Recruit got favorable terms on telephone lines, maintenance and other services as it sought to enter the telecommunications field.