The chairman and executives of bankrupt Tokyo-based bedding supplier L&G K.K. were arrested Thursday on suspicion of defrauding investors.
Chairman Kazutsugi Nami, 75, and other L&G executives are believed to have collected ¥118 million in total from six clients between July and December 2007 despite knowing they could not pay the promised returns on investments, according to a joint investigation squad of the Metropolitan Police Department and the Miyagi and Fukushima prefectural police forces.
Tokyo police said further investigation indicates the suspects collected a combined ¥126 billion from about 37,000 clients from 2000 to 2007.