Tokyo police said Saturday they have arrested two men on suspicion of defrauding Itochu Finance Corp. of some ¥750 million by asking the affiliate of a major trading house to take over a right to receive commission that was entirely fabricated.
The two suspects are Yushin Konno, 42, and his acquaintance, Satoshi Shimizu, 55, according to the police.
Konno, president of an insurance agency, pretended he had a contract with a major life insurer and allegedly asked an Itochu Finance official in 2008 to purchase the right to receive commission from the insurer, thereby defrauding it of money, they said.
Shimizu attended the negotiations between Konno and Itochu by pretending he was an official of the life insurer to convince Itochu officials, according to the investigation.
The two, believed to have gained more than ¥1 billion in total, have admitted to the charges, according to the police, with Konno saying he needed money to ease the cash-flow situation of his own company.
Itochu Finance filed a criminal complaint this April.