On the same day that investigators raided Nova Kikaku's former headquarters, Sahashi along with former president and accounting manager of Nova Kikaku, Toshihiko Murata, were arrested on June 24, 2008 and questioned about misappropriation of funds. While Sahashi acknowledged that the fund was under his control he denied any wrongdoing and on July 30, 2008 he announced his intention to plead "not guilty." Murata, reputed to be Sahashi's right-hand man, reportedly admitted to allegations of embezzlement in the conduct of business. On August 26, 2009 Sahashi was found guilty of embezzlement and sentenced to three and a half years of imprisonment with hard labor. In December 2010 his sentenced was reduced to two years by the Osaka High Court. He appealed against this conviction, but the appeal was rejected by the Supreme Court on December 19, 2012.