Overview

• The Tokyo Metropolitan Police have decided to re-arrest Susumi Hajime, 45, and two associates on Wednesday on suspicion of fraud, following earlier arrests this month over unregistered bond solicitation.
• Investigators say that between November 2022 and February 2023 the trio told four Japanese men they would receive 10–15% annual dividends and full principal repayment, obtaining about ¥73 million under the pretext of SDH bond purchases.
• Authorities believe SDH lacked the profits to cover the promised payouts and operated in a self-propping manner using new investor funds, with payments reportedly faltering from around February 2024.
• As reported by Asahi based on police accounts, the operation is suspected to have drawn about ¥460 billion from roughly 5,500 people since 2016.
• Mainichi and other outlets report police are also examining a 2021–2023 tranche in which about 2,400 investors bought bonds totaling roughly ¥170–171 billion, and nine suspects were arrested on August 6 for unregistered sales.