The Tokyo District Public Prosecutor's Office on Wednesday indicted three former executives of KSD, an organization that provides industrial accident insurance to small businesses, on a charge of breach of trust for forcing a KSD affiliate to purchase -- using KSD money -- compact discs of a singer who appears in KSD advertisements.

The three are former KSD President and founder Tadao Koseki, 79, former Senior Managing Director and Koseki's son, Kimiyasu Koseki, 40, and former Managing Director Hiroyoshi Yamada, 58. They were arrested Nov. 29.

According to the indictment, the suspects caused the affiliate, KSD Homeikai, to suffer some 168 million yen in losses by forcing it to purchase around 150,000 compact discs of the Japanese female singer.

They said Koseki, who also headed the affiliate, ordered officials of KSD Homeikai to purchase the singer's CDs on three release dates between 1998 and this year. They were then given away to KSD members.

KSD Homeikai, which obtained the funds to purchase the CDs from KSD, bought 150,000 out of the 160,000 CDs that were produced.

Prosecutors earlier indicted Tadao Koseki and Yamada on earlier charges of embezzlement by funneling 80 million yen in KSD funds to a woman friend of Koseki.

The two Kosekis and Yamada were arrested Nov. 8 on suspicion of embezzlement. The elder Koseki is suspected of ordering money to be withdrawn from KSD's bank account and then to be given to a woman with whom he was having a relationship.

KSD is also alleged to have donated 250 million yen to politicians of the ruling Liberal Democratic Party through various channels, including affiliated organizations, between 1995 and 1999.

The elder Koseki resigned as KSD president following an Oct. 6 raid by prosecutors on KSD's Tokyo headquarters and a local LDP office.

KSD is a mutual aid union for small-business owners, overseen by the Labor Ministry. It mainly offers insurance policies for small-business owners, under which compensation is paid to their employees in the event of industrial accidents.

KSD has a membership of some 1.07 million. Annual premiums for the foundation's mutual aid insurance total 25 billion yen.