OSAKA — Osaka and Kyoto prefectural police jointly raided the main office of the Tokufukai welfare business group and more than 20 other locations July 16 over allegations that the group committed fraud involving a massive amount of government subsidies.

The Tokufukai group is believed to have illicitly funneled 1.5 billion yen in state financial assistance to its business expansion schemes. The money is also suspected of being used to repay the personal loans of Mitsuharu Naruse, 75, Tokufukai’s former secretary general, who effectively controls the group, according to informed sources. Of the 1.5 billion yen, more than 100 million yen has disappeared, they said.

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