Prosecutors arrested former Daio Paper Corp. Chairman Mototaka Ikawa on Tuesday in connection with his massive borrowings from Daio Paper group companies, alleging he caused ¥3.2 billion in damage to the firms.
The 47-year-old Ikawa, grandson of the paper maker's founder, admitted to committing aggravated breach of trust and was quoted as telling the prosecutors he used all of the borrowed money on gambling at casinos, investigative sources said.
While the prosecutors are still investigating the full scale of Ikawa's loans, they arrested him on suspicion of instructing four subsidiaries to remit a total of ¥3.2 billion in seven installments to various bank accounts, including his own, between July and September, causing damage to the firms.