The arrested head of Tokyo-based supercomputer developer Pezy Computing is said to have used government subsidies he fraudulently obtained for capital injections at several companies linked to him, according to sources.
Pezy Computing President Motoaki Saito, 49, and former company official Daisuke Suzuki, 47, were arrested on Tuesday by the special investigative squad of the Tokyo District Public Prosecutor’s Office on suspicion of having cheated the government-affiliated New Energy and Industrial Technology Development Organization (NEDO) out of more than ¥400 million in subsidies.
In February 2014, Saito and Suzuki are believed to have conspired to submit a report that padded related costs for a NEDO project to ¥773 million and received subsidies totaling some ¥499 million — just below the ¥500-million ceiling — sources said.
They overstated the expenses by lying about outsourcing costs, according to the sources.
The suspected abuse of the subsidies for capital hikes at the companies linked to Saito was apparently intended to boost their credibility, the sources said.
According to a private credit research company, Saito serves as a representative or board member at several computer-related companies.