A large portion of the ¥46.3 million mistakenly transferred by the town of Abu in Yamaguchi Prefecture to one of its residents has been returned, public broadcaster NHK reported Monday.
Sho Taguchi, 24, received the money in early April, in addition to ¥100,000 in COVID-19 relief aid that was paid to each of the town’s 463 low-income households. The municipal government filed a lawsuit against Taguchi earlier in May demanding that he repay it.
He was arrested Wednesday on suspicion of computer fraud after failing to return the money despite requests from the local authorities.
Taguchi is suspected of obtaining profit illegally by transferring ¥4 million of the money to a payment service company. Media reports have said he split the ¥46.3 million between three different payment service companies and used it all on online casinos.
But one of the companies to which Taguchi transferred the money has returned more than ¥35 million to the town's account, NHK reported, quoting investigative sources.
Taguchi made 27 payments to the firm, and the full amount of that money was returned to the town, NHK said.
The town has sued Taguchi, demanding ¥51 million in compensation, including money for legal fees.
According to town representatives, Taguchi initially agreed to return the money. But he later admitted to having moved the money, telling officials that he was unable to return it. He has been quoted as saying he is willing to “atone for the sin.”