Seven people, including the 62-year-old chairman of Nagoya-based meat wholesaler Fujichiku, were arrested Monday on suspicion of fraudulently receiving more than 300 million yen in subsidies in the wake of the mad cow scare.
It is the fifth criminal case involving the mislabeling of beef in an effort to receive money from the government, which was buying beef to assist domestic producers who saw consumption plunge after Japan's first case of bovine spongiform encephalopathy came to light in September 2001.
In addition to the arrests, Aichi Prefectural Police searched dozens of locations, including Fujichiku's headquarters and the home of its chairman, Yoshiharu Fujimura, in connection with the case.