Nippon Shinpan Co., mired in allegations that its executives paid off a racketeer to expedite proceedings at the firm's general shareholders' meetings, had failed to sever ties with a number of racketeers in the late 1980s, a former company executive said Monday.
The major Japanese consumer credit company had ties with about 20 "sokaiya" corporate extortionists around that time, prior to signing a "fictitious contract" with racketeer Kikuo Kondo, 60, to make him an "adviser" to the firm, the former executive told Kyodo News.
Kondo was arrested Saturday, along with eight officials of Nippon Shinpan, popularly known as Nicos. The company's officials allegedly gave 28 million yen in cash to the racketeer in violation of the Commercial Code.