Jiji PressOSAKA (Jiji Press) — 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 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 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 in subsidies for the kindergarten and the prefectural government out of ¥18.8 million 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.
Kagoike supervised the management of the two kindergartens as head of both institutions, and his wife supported him as deputy head.
¥176 million swindled
The total amount of subsidies the couple illegally obtained stood at ¥176 million, including ¥56 million from the state, according to the indictment.
The tally exceeds ¥200 million if the amount the couple attempted to obtain is added.