Kagoike, wife indicted over fresh fraud charges

September 12, 2017

OSAKA- The Osaka District Public Prosecutors Office's special investigation team indicted Yasunori Kagoike, former head of scandal-tainted school operator Moritomo Gakuen, and his wife, Junko, on fresh fraud charges on Monday.

The couple was indicted for defrauding the Osaka prefectural and city governments of some 120 million yen in subsidies for two kindergartens through false applications.

The special squad had already indicted the couple for alleged state subsidy fraud related to the establishment of a Moritomo Gakuen primary school.

The latest indictment effectively concludes criminal probes into the couple's alleged subsidy fraud.

The team is now set to launch full-fledged investigations into a breach of trust case over the sale of state-owned land in Toyonaka, Osaka Prefecture, by the Finance Ministry's Kinki Local Finance Bureau to Moritomo Gakuen for the site of the planned primary school at an allegedly unfair discount.

Kagoike, 64, and his 60-year-old wife are accused of swindling the Osaka prefectural government out of 92.5 million yen in subsidies for Tsukamoto Kindergarten, operated by Moritomo Gakuen, between fiscal 2011 and fiscal 2016.

They made false reports about the kindergarten, such as on the number of full-time teachers and support for children with disabilities, in order to obtain the subsidies, according to the indictment.

Using similar tricks, the couple swindled the Osaka city government out of 9.2 million yen in subsidies for the kindergarten and the prefectural government out of 18.8 million yen in subsidies for a different kindergarten in the Moritomo Gakuen group.

In addition, the couple attempted to defraud the prefectural government of 22.7 million yen.

Kagoike supervised the management of the two kindergartens as head of both institutions and his wife supported him as deputy head.

The total amount of subsidies the couple illegally obtained stood at 176 million yen, including 56 million yen from the state, according to the indictment. The tally exceeds 200 million yen if the amount the couple attempted to obtain is added.

The couple has already returned the 56 million yen obtained from the state. Jiji Press