The organization that runs Sakata Junior College will file a criminal complaint against the former head of the college's secretariat for allegedly misappropriating 40 million yen, sources close to the case said Saturday.
Mizuho Gakuen, which runs the scandal-tainted college in Yamagata Prefecture, will file the complaint with police against Eizaburo Muro, 58, possibly by the end of this month on suspicion of embezzlement, the sources said. It is also planning to file a damages suit with the Tokyo District Court.
According to the sources, the operating body's accountant discovered that Muro withdrew a total of at least 40 million yen in college funds from the college's bank account over a number of occasions.
The organization believes Muro illegally withdrew the money as he failed to leave any receipts for payments. The college dismissed Muro in January.
The college, which caters mainly to Chinese students, has been accused of misappropriating 43.5 million yen in government-funded scholarships that should have been paid to students.
The college began recruiting Chinese students in the spring of 2000, apparently in an attempt to resolve its poor finances. It was reportedly 300 million yen in debt due to bad management.
Many of the Chinese students who were enrolled at the college were subsequently found working in Tokyo, in violation of visa regulations.
The college also delayed paying salaries to teachers and other employees and was searched by local labor standard inspectors earlier this month.
The college also has 100 million yen in expenses that are unaccounted for, paid from tuition fees collected from Chinese students. The college is investigating to see if Muro is connected to that case.