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Three TECOM group companies that prepare medical students for exams were searched by Tokyo prosecutors Wednesday for alleged evasion of income tax, and the president of one of the firms was arrested.

Prosecutors suspect the three Tokyo-based firms have evaded more than 300 million yen in taxes on roughly 950 million yen in hidden income by placing fictitious orders to other group companies or padding bills for textbooks and other teaching materials, sources familiar with the case said.

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