However, she said the way Comsn tried to expand its business was particularly despicable. Before the fraud scandal mushroomed, if Comsn got caught inflating the number of employees at a nursing-care facility, it would shut the facility down to avoid disciplinary action.

Hidekatsu Watanabe, a senior analyst at Mizuho Securities Co., said he hopes the Comsn scandal serves as a warning to service providers not to break the law and encourages them to build networks with other providers rather than trying to expand their businesses on their own.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.