Japan Cycling Association Chief Arrested for 30M Yen Fraud, June 11

Tokyo police arrested two men on fraud charges involving a fake patent investment scheme. Shoji Nagasawa, 77, heads the Japan Cycling Association. Shigeki Nagatomo, 60, runs a patent leasing firm. Together they allegedly tricked two men from Kagoshima into lending 30 million yen by claiming they needed money for patent applications. Police say the 13 patents they promised did not exist.

How the Scheme Worked

The two men told victims the cycling association would buy 13 electric vehicle patents from the leasing company for 10 billion yen. They claimed patent consolidation would cost 30 million yen and promised to return 600 million yen if victims lent the money. Nagatomo showed fake confirmation letters bearing the cycling association’s seal to make the deal seem real. Police say 12 of the 13 patents were never approved, and the remaining one had already expired.

Who Got Arrested and When

Police arrested Shoji Nagasawa, director of the Japan Cycling Association in Tokyo, and Shigeki Nagatomo, head of Secoh Giken patent leasing company in Osaka. The fraud occurred between May 29 and June 5, 2023. Of the 30 million yen stolen, 3 million yen went from Nagatomo to Nagasawa. Police have not disclosed whether the men admitted guilt.

Why This Matters for Nonprofits

The cycling association is a registered nonprofit foundation. Authorities say the men exploited the organization’s reputation to gain victim trust. Police used the nonprofit’s name and official seal to create fake documents. The case shows how criminals can misuse legitimate organizations to commit fraud.

The Victims and Their Loss

Two company executives in Kagoshima, one in his 70s and one in his 40s, lost 30 million yen total. The men promised returns of 600 million yen if victims lent money for patent fees. Victims believed the deal was legitimate because of the cycling association’s official documents and seals.

Final Thoughts

Two nonprofit leaders used fake patents and forged documents to steal 30 million yen from investors. The case highlights how criminals exploit nonprofit credibility to commit fraud. Victims should verify investment deals directly with organizations before sending money.

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