Kagoikes indicted over fresh fraud charges


A special investigation team from the Osaka District Public Prosecutor’s Office has indicted Yasunori Kagoike, the former head of scandal-tainted school operator Moritomo Gakuen, and his wife, Junko, on fresh fraud charges.

The indictments are for defrauding the Osaka Prefectural Government and Osaka Municipal Government of some ¥120 million in subsidies for two kindergartens.

The special squad has already indicted the couple for alleged subsidy fraud related to the establishment of a Moritomo Gakuen elementary school.

The latest indictment, announced Monday, effectively concludes criminal probes into the couple’s alleged subsidy fraud.

The team will next launch a full-fledged investigation into a breach of trust case over the sale of government-owned land in Toyonaka, Osaka Prefecture. The sale was by the Finance Ministry’s Kinki Local Finance Bureau to Moritomo Gakuen, for the site of a planned elementary school at an allegedly unfair discount.

Yasunori, 64, and Junko Kagoike, 60, are accused of swindling the Osaka Prefectural Government out of ¥92.5 million in subsidies for Tsukamoto Kindergarten, operated by Moritomo Gakuen, between fiscal 2011 and fiscal 2016.

They made false reports about the kindergarten, such as on the number of full-time teachers and support for children with disabilities, to obtain the subsidies, according to the indictment.

The couple allegedly used similar tricks to swindle the Osaka Municipal Government out of ¥9.2 million in subsidies for the kindergarten and the prefectural government out of ¥18.8 million in subsidies for a different kindergarten in the Moritomo Gakuen group.

In addition, the couple allegedly attempted to defraud the prefectural government of ¥22.7 million.

Yasunori Kagoike supervised the management of the two kindergartens as head of both institutions and his wife supported him as deputy head.

The total amount of subsidies the couple illegally obtained stood at ¥176 million, including ¥56 million from the central government, according to the indictment. The tally exceeds ¥200 million if the amount the couple attempted to obtain is added.

The couple have already returned the ¥56 million obtained from the central government.