Police believe that the ring victimized approximately 200 persons for losses totaling 26 million yen between September of last year and February.
The ruse typically involved employees of the clubs luring already drunken customers onto their premises and plying them with very strong alcohol, up to 160 proof. Once incapacitated, the customers were then relieved of their credit cards, which were charged exorbitant sums for nonexistent purchases at a separate business in the network.
In the early morning hours of October 15 of last year, a 57-year-old man lost 120,000 yen in such a scam allegedly perpetrated at club Sherry.
Police have charged seven persons, including Zhang Jianzhong, the 53-year-old manager of Sherry, with computer fraud.
Zhang denies the charges.
As a part of the investigation, police searched four Chinese hostess clubs.