TOKYO (TR) – Tokyo Metropolitan Police have arrested three men, including a 45-year-old Shibuya Ward resident, for allegedly running a predatory loan shark ring that targeted struggling business owners.
According to NHK (June 23), the trio reaped around 500 million through the scheme.
Masakazu Shirai, an individual of unknown occupation residing in Ebisu-Nishi, and two accomplices face charges of violating the Investment Act.
According to police, the trio allegedly lent cash to four individuals, including restaurant operators, at exorbitant interest rates ranging from 6.9 to 11.8 times the legal limit between May 2023 and last month. During this period, the group unlawfully collected approximately 3.91 million yen in interest.
Police have not disclosed whether the three suspects have admitted to the allegations.
Legally bank accounts
Investigators revealed a cunning modus operandi. Shirai allegedly instructed his accomplices to target business owners desperate for cash. To mask the extortion, the suspects forced victims to create notarized documents at a public notary office that falsely stated the loans carried legal interest rates.
When the victims inevitably fell behind on the crippling payments, the loan sharks submitted these fabricated documents to a court, using them to legally freeze and garnish the deposits in the victims’ bank accounts.
The scheme unraveled after several desperate restaurant owners, whose accounts had been seized, sought help from the police.
Investigators believe the syndicate’s operation was highly lucrative. Since October 2022, the group is suspected of loaning roughly 250 million yen to at least 132 people, ultimately squeezing more than 500 million yen in returns from their victims.
