Tokyo Metropolitan Police arrested two men on suspicion of fraud for allegedly stealing ¥30 million [3] from two investors in Kagoshima.
The arrests involve high-ranking figures in the cycling and technology sectors, raising questions about the oversight of professional associations and the vulnerability of private investors to high-yield promises.
Among those detained is Keiichi Nagasawa, 77 [4], who serves as a representative of the Japan Cycling Association. The second suspect is Eiki Nagatomo, 60 [5], the president of a technology-development company.
According to police, the suspects targeted two men from Kagoshima Prefecture in 2023. The suspects said a patent application would cost ¥30 million [2]. They allegedly promised that if the victims lent them this amount, they would eventually return ¥600 million [1].
Investigators said the suspects used this fabricated investment scheme to obtain ¥30 million [3] in cash from the victims. The Tokyo Metropolitan Police conducted the arrests after the fraudulent nature of the patent claims came to light.
Police said the suspects designed the scheme to appear as a lucrative business opportunity. By leveraging their professional titles and the promise of a massive return on investment, the suspects were able to secure the funds from the Kagoshima residents.
The investigation continues as authorities determine if there are additional victims or further connections to the Japan Cycling Association's official operations.
“The suspects told the victims that a patent application would cost ¥30 million.”
This case highlights a recurring pattern of 'affinity fraud,' where perpetrators use their status in respected organizations—such as a national sports association—to build trust with victims. The extreme disparity between the requested ¥30 million and the promised ¥600 million return is a classic red flag of investment scams, suggesting the suspects relied on the perceived legitimacy of their professional titles to override the victims' skepticism.
