1.3 billion yen fraud by fictitious transaction or company presidents arrested January 16 13:48

The president of a Kyoto city company has been arrested by the Metropolitan Police for allegedly deceiving about 1.3 billion yen from a chemical company Showa Denko's grandchild company in a so-called cyclical transaction that repeats fictitious transactions. You have denied the charges.

Two people were arrested: Kyoto City's president, Kiyoshi Wada (69), and an accounting employee of the company.

According to the Metropolitan Police Department, it is about 1.3 billion yen from Showa Denko's grandchild company, which was headquartered in Minato-ku, Tokyo, pretending to import and sell silicon carbide, a chemical raw material, from China between November 2016 and January of the following year. Has been suspected of defrauding fraud.

So-called circular trading has been conducted between the grandchild company and Wada's company for six years, repeating fictitious transactions.

A cyclical transaction was discovered during an audit, and the grandchild company was subsequently merged with the parent company.

According to the Metropolitan Police Department, Wada denied the allegations and stated that "it was not a scam because the grandchild company also knew that the transaction was fictitious."