Japan: Two Men Suspected in $1M Fraud, Gambling Linked to One

Two men are suspected of defrauding a company out of more than 100 million yen and at least one of them is suspected to have spent money on entertainment activities, including gambling.

Fictitious Orders Result in Losses in Millions of Yen
The criminal case is from Japan where a 51-year-old man identified with the initials T.W., a former employee of Toyota Coniq Pro, a Toyota Motor Corporation subsidiary, is facing accusations of conspiring with another man to conduct a fraud evaluated at approximately 160 million yen ($1.07 million). The 51-year-old allegedly conspired with a 56-year-old man identified with the initials T.S., who worked at an IT company called Yonageya, to defraud Toyota’s subsidiary out of millions of yen, Tokyo Reporter reveals citing local media reports.

Allegedly, the two men joined forces to develop a scheme revolving around fictitious orders for website maintenance. The fraudulent orders, totaling approximately 160 million yen ($1.07 million) were reportedly created for the maintenance of a website on behalf of Daihatsu Motor Co.

In reality, T.W. and T.S. allegedly used a shell company created by the former and claimed payments from Toyota Coniq Pro for non-existent work completed and billed by the IT company. It is unclear whether further individuals were involved in the suspected fraudulent scheme and how it wasn’t detected for nearly two years.

Allegedly, there were nearly two dozen fraudulent transactions completed using the scheme. The two are suspected of engaging in unlawful activity between April 2020 and January 2022. In 2022, Toyota Coniq Pro conducted an internal audit and was able to uncover the elaborate scheme. Subsequently, T.W. was fired from his role with the company.

Investigation Into the Massive Fraudulent Activity Continues
Currently, the investigation is still ongoing. Law enforcement is looking into all aspects of the fraudulent scheme as it is suspected that it was used to collect even more money than initially anticipated.

Details on the matter are scarce and it is unclear what charges, if any, the two suspects are facing. Also remains to be confirmed whether or not they are detained or remain at large and if additional people were involved in the massive fraudulent scheme.

As noted, T.W. allegedly spent ill-gained funds for gambling activities. He is also suspected of using money obtained from the unlawful activity for other entertainment activities, including hostess clubs, venues that resemble night clubs where mostly female staff is employed and men engage in social talks while having drinks.