The father of TV personality Rola has been arrested on suspicion of swindling ¥875,000 from the Japanese health insurance system between December 2008 and January 2009, police sources said.
Jurip Al-Asa, a Bangladeshi citizen, denied the charge.
"Those aren't the facts and I had nothing to do with it," he was quoted by the sources as saying.
Police arrested him Saturday when he turned up at a police station in Suginami Ward, Tokyo, with his lawyer.
According to police, Jurip, 54, submitted forged documents on an acquaintance's behalf to the Setagaya Ward Office in Tokyo, claiming the person had received medical treatment in Bangladesh.
Jurip reportedly claimed that the 47-year-old compatriot, who lives in Japan and pays into the health insurance system, was entitled to be reimbursed.
Police suspect Jurip led a group of five to six people who used similar means to swindle about ¥12 million from Suginami Ward and the cities of Sagamihara, Kanagawa Prefecture, and Nikko, Tochigi Prefecture, between December 2008 and March 2012, the sources said.
Jurip left Japan for Bangladesh in August 2012 after a member of the alleged group was arrested. The National Police Agency had him placed on Interpol's wanted list.
Jurip's daughter, Rola, is a popular fashion model and TV personality who makes frequent appearances on Japanese broadcasts. Born in 1990, her mother is of Russian and Japanese descent.
Rola spent much of her childhood in Bangladesh but at the age of 9 returned to Tokyo, where she had been brought up by her Chinese stepmother.
