Police on Thursday searched the failed Fukuoka-based meat processor Nippon Shokuhin Co. in connection with a probe into allegations that the firm mislabeled beef in a scam to obtain state subsidies.
The company, which filed for court protection from creditors on July 3, allegedly received some 136 million yen under a buyback program by labeling imported meat as domestic. It is also suspected of obstructing government investigations into possible fraud.
Police searched 10 locations Thursday, including the firm's headquarters in Fukuoka's Higashi Ward as well its factory in the city of Koga, Fukuoka Prefecture, and the home of an auditor.
Nippon Shokuhin is the second company after Snow Brand Foods Co. to be investigated for allegedly defrauding an industry federation out of the subsidies. The government set up the system to help meat companies hit hard by slumping beef sales following last year's mad cow disease outbreak.