In a case heard at the Mito District Court, Saito Mitsuru, the 68-year-old former president of Keisei Department Store, received a sentence of four years in prison for conspiring to commit fraud involving the government’s COVID-19 employment adjustment subsidies. The defendants inflated employee downtime to submit false applications to the Ibaraki Labor Bureau from April 2020 to May 2021, resulting in the misappropriation of around 670 million yen. The judge, Ieiri Mika, imposed a prison term less than the prosecution's demand of six years and six months.

The prosecution argued that during the defendant's tenure, he worked with a former director to alter employee records, leading to inflated claims. Furthermore, evidence submitted highlighted how Saito sent messages expressing concern about financial difficulties faced by the department store, which they interpreted as a demand to falsify data for increased claims. His defense, on the other hand, contended that his communications were merely reprimands for the timing of requests made by subordinates and that Saito did not directly instruct any wrongdoing.

This case reflects the ongoing scrutiny of financial misconduct during the pandemic, especially as many businesses sought government assistance. The ruling underscores the legal system's stance against fraud, particularly concerning public funds allocated for economic relief during crises, and raises questions about corporate governance and accountability in Japan’s retail sector amid challenging economic conditions.