The president and 7 workers of The Grand Shield, beforehand featured in Japanese media as a result of monetary troubles with dental braces, have been arrested for promoting high-yield bonds with out registration, promising annual returns of 20%. It is believed that two ladies among the many suspects collected 4.6 billion yen alone.

Eight Arrested for Violating Financial Instruments and Exchange Act

Yoshitaka Nakamura (June of final 12 months): “Our company is in a situation where we are hit with a double punch. I have also been asked why this has happened consecutively, but I would like to ask that myself.”

One 12 months in the past, Nakamura, president of The Grand Shield, gave an unique interview. Seated on a big chair adorned with gold decorations, the room was crammed with gold bars and wine cellars.

The Grand Shield has additionally been concerned in monetary troubles with recruiting displays for dental braces. Customers had been promised “virtually free” dental corrections in the event that they paid near 2 million yen upfront, however each remedies and refunds had been halted.

This arrest, nevertheless, just isn’t associated to dental braces however to the violation of the Financial Instruments and Exchange Act regarding bonds. Promising excessive returns of round 20% yearly, the suspects are believed to have collected about 8 billion yen from roughly 1,300 buyers. Eight people have been arrested.

Three Women Arrested for Competing in Bond Sales

Nakamura (September 2018): “Thank you all for gathering here today.”

The footage is from a party held in 2018. Attending had been members of Trustel, a administration consulting agency that issued the bonds, and The Grand Shield, which bought the bonds. Six of the eight arrested had been current.

Nakamura (September 2018): “Thanks to all the intense people, I feel like I’ve had an intense life. Probably, I am the richest person here today.”

Nakamura reportedly started promoting Trustel bonds a 12 months prior. Participants had been all smiles, indicating profitable fundraising.

Three ladies who attended the party, smiling and showing shut, had been arrested: 38-year-old Hiromi Akimoto, 35-year-old Keiko Satake, and 34-year-old Chie Kagii.

The three competed in bond gross sales and had been gross sales rivals. Satake is believed to have collected roughly 1.964 billion yen, and Akimoto roughly 2.65 billion yen.

Satake (September 2018): “I have always had a desire to succeed and believed I would, but I couldn’t quite achieve it. It was a frustrating 30 years, but meeting Nakamura and receiving guidance on various methods has finally allowed me to take steps towards my success.”

How Did They Gather the Funds? A Former Employee Speaks

How did Akimoto and Satake accumulate such giant sums of cash?

Former Grand Shield Employee: “They were good at what is known as ‘dating sales tactics,’ having worked in nightlife in their early twenties. They were skilled in that area.”

Many male workers had been interested in Satake’s allure and supported her in closing offers.

Satake: “Those people over there, I call them ‘Satake’s Children’ (laughs).”

According to a former worker of The Grand Shield, the 2 ladies had been “tightly bonded with Nakamura.”

Former Grand Shield Employee: “They went on sales calls with Nakamura and secured contracts with various wealthy individuals. Earning a lot was seen as a virtue, and The Grand Shield was that kind of company. They revered Nakamura as a god, and their belief was reflected in their sales performance.”

Akimoto reportedly used the surname “Watanabe” till simply earlier than her arrest. The victims are outraged.

Victim: “She may have changed her surname to avoid being identified upon arrest.”

When requested why she modified her identify earlier than the arrest, her mom mentioned:

Akimoto’s Mother: “My daughter divorced her husband and changed her surname to my former husband’s about six months ago. I don’t know the reason, but she said she wanted to start anew with the new surname.”

Dental Braces Customers Also Induced to Buy Bonds

The eight arrested are believed to have collected a complete of 8 billion yen, promising annual returns of 20%. Some dental brace prospects had been additionally induced to buy bonds.

Former Grand Shield Employee: “Some people bought bonds worth millions or tens of millions of yen. Generally, the wealthy were targeted. The dental braces were recommended to salaried workers and young women. Initially, both the bonds and braces payments were properly made, building trust, and leading people to want to try both products from The Grand Shield.”

A girl in her 30s who purchased dental braces and bonds value 3 million yen: “They said there were guarantees at multiple levels, so even if there was a problem, the money would be returned.”

Woman in her 30s who purchased dental braces and bonds value 2 million yen: “I was told I would never lose money.”

Laughing on the Emergency Meeting

Nakamura (November final 12 months): “(Q: Nakamura, will you not refund the victims? Have you fulfilled your responsibility?)”

Nakamura silently acquired right into a taxi, masking his face along with his cellphone, and left the scene.

In final 12 months’s interview with this system, he mentioned, “Our company hasn’t made a profit or received any money.” However, The Grand Shield’s workplace was crammed with luxurious furnishings, gold bars, and lavish ornaments, together with a cellar storing dozens of bottles of wine.

At the emergency assembly in February final 12 months with The Grand Shield and Trustel, they mentioned the cash collected from prospects as follows:

Grand Shield Employee: “We can only wait for a month. The bank is already halted payments. But we’ll still transfer.”

Trustel Member: “We can’t blame it on Ukraine (invasion).”

It was evident that they didn’t take the lack to make curiosity funds severely.

On the scheduled switch date, a suspicious sufferer visited Trustel’s headquarters straight when the curiosity funds weren’t made.

Woman in her 40s who purchased bonds value 2 million yen: “The place was empty. My legs gave out.”

After the scandal broke, workers disappeared.

Confronting Trustel’s President… “Return the Money”

In September final 12 months, based mostly on data that Trustel President Akira Takahashi (61) appeared in courtroom, victims waited exterior the courthouse to confront him.

Creditor: “You are President Takahashi, right? President Takahashi, return the money. The victims are suffering. Is there no apology? My family and I are all in trouble. Are you ignoring us? President, answer us. There was no explanation, and suddenly we lost contact. Is it Nakamura’s fault?”

Takahashi: “I have nothing to say.”

“(Q: Don’t you have anything to say?) I told you, I have nothing to say.”

Creditor: “Hundreds of people have used their family or company money.”

Where did the 8 billion yen go?

The Tokyo Metropolitan Police Department is investigating to uncover the total extent of the case.

Source: ANN