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Kataoka was a finance minister who was entrusted by Lord Gohda to oversee the kingdom's monetary affairs. Eventually Kataoka succumbed to greed and began to take advantage of the numerous opportunities for illegal personal gain that his position offered. One of his favorite scams was to accept construction bribes from wealthy builders to make sure that their companies would receive highly lucrative contracts. After discovering this treachery Lord Gohda dispatched the Azuma Ninja to punish Kataoka for his transgressions.
There are two different endings for Kataoka, depending on which character you choose to play as.
Rikimaru finds Kataoka within his compound and scolds him for his greed, with Kataoka's only excuse being that he never thought Lord Gohda would discover his treachery. Rikimaru offers Kataoka a chance to atone for his shameful actions by ritualistically committing suicide, and offers his assistance if Kataoka accepts this course of action. Kataoka sincerely thanks Rikimaru for the generous offer. He asks Rikimaru to tell Lord Gohda of how he died, then he walks into the middle of a snowy courtyard and kneels. He pulls a dagger and, after a moment of hesitation, plunges the blade into his stomach. Rikimaru springs forward and decapitates him, then informs Lord Gohda of the minister's honorable end.
Ayame discovers Kataoka hiding and berates him for his actions. Kataoka admits that what he has done is wrong, but says that he will not allow any woman to talk to him in such an insolent manner. He tries to kill Ayame by shooting at her with a bow, but the kunoichi dodges his arrows and cuts him down.