The stock steadily rose in price, reaching ¥200 per share by the end of the year, and rumors began to arise in the editorial pages of various newspapers that the Banchokai had somehow managed to manipulate the market.
Working with this unsubstantiated rumor, ultrarightist officials in the Ministry of Justice accused officials in the Ministry of Finance and members of Saitō Cabinet of conspiracy with the Bank of Taiwan to permit the Banchokai to purchase shares at an artificially low price in return for bribes of cash and stock.
In April 1934, the Ministry of Justice ordered the arrest of the Vice-Minister of Finance, director of the Bank of Taiwan and president of Teijin.
After a lengthy trial, all sixteen defendants were cleared of all charges, and the entire set of stock transactions involving Teijin shares was found to be free of fiscal irregularities.
[1] Indirectly, the Teijin Incident contributed to an increase in violent terrorist attacks by secret societies such as the Sakurakai and League of Blood against leading figures in government and finance.