The Tokyo Metropolitan Police has arrested Kaoru Sakagawa, the president of travel agency JCIT, and her husband, Meng Wei, a Chinese national and director of the company, on suspicions of fraudulently obtaining employment adjustment subsidies intended to support businesses affected by the COVID-19 pandemic. Reports indicate that Sakagawa, 56, and Meng, 53, fabricated employee counts between 2020 and 2022, claiming to have more staff than they actually did, resulting in the fraudulent collection of approximately 600 million yen in state subsidies.

According to police investigations, from February to July 2022, the couple allegedly submitted false claims to the government, asserting that they paid pandemic-related leave benefits to employees while their actual workforce consisted of only about ten people. They reportedly gathered names and birth dates from acquaintances to create a fictitious list of employees, falsely presenting them as interpreters in order to qualify for the financial support.

Authorities suspect that the couple misused the appropriated funds to purchase a luxury apartment in Nihonbashi Hamacho, Chuo Ward, Tokyo, as well as a 750-tsubo plot of land in Yamanashi Prefecture and a vehicle. The investigation is ongoing, with police working to corroborate these purchases with the claimed fraudulent subsidy receipts and uncover additional details regarding their activities during the pandemic.