Nagoya sex club chain with Yamaguchi-gumi ties cited for tax evasion

Yoshinori Sato
Yoshinori Sato of the Blue group

NAGOYA (TR) – The Nagoya Regional Taxation Bureau cited a chain of sex clubs whose boss is under prosecution for threatening an organized crime investigator with tax evasion, it was learned on Sunday, reports the Sankei Shimbun (July 27).

Over the past six years, the seven companies within the Blue chain of sex clubs concealed 870 million yen in income, the bureau said, adding that additional taxes to be paid totals approximately 400 million yen.

In December, the president of the Blue group, Yoshinori Sato, 56, was sentenced to two years and six months in prison for making threatening phone calls to the home of the investigator on five occasions between July and August of 2010.

The officer was investigating whether the Kodo-kai organized crime group, an affiliate of the Yamaguchi-gumi, was utilizing the Blue group as a source of funds. Sato is currently appealing one portion of the verdict.

In September of last year, Aichi Prefectural Police arrested Katsunori Kuraki, an inspector within the first investigative division, for allegedly leaking confidential information to Sato.

According to Jiji Press (July 27), the Blue group used a fake account register to show tax officials for its 11 “fashion health” clubs, which are establishments that typically offers oral sex as administered by masseuses attired in uniforms.

Sato was also arrested in 2011 for assisting in concealing the identity of the number-two boss of the Kodo-kai during a round of golf. Sato received a prison term of two years and six months, which was suspended for four years.

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