Ex-CEO Scams 300 Million Yen with Fake Jet Purchase Claim

“We have branches all over the world, and our headquarters is in Beverly Hills, one of the prime locations in the U.S.”

“We bought 20 jumbo jets in cash for investment purposes. I became the top sales performer at a foreign real estate company, with an annual income of 800 million yen.”

The suspects reportedly emphasized their luxurious lifestyle to deceive clients.

On November 6, the Tokyo Metropolitan Police’s Economic and Life Crime Division arrested six individuals, including Lee Ki-do (39), the CEO of consulting firm ‘REIT Japan Holdings’ (hereinafter referred to as ‘R Corporation’), on suspicion of violating the Financial Instruments and Exchange Act (unregistered business activities). The suspects falsely told clients that R Corporation was involved in mining cobalt for use in lithium-ion batteries in the Congo, Africa. Despite the lack of any actual business operation, they were allegedly soliciting investments.

Is that how you treat someone who has been kind to you?

“The incident for which the suspects were arrested occurred in the fall of 2020. Four men from Hyogo Prefecture were persuaded to purchase unlisted stocks from ‘Seventh Stars Japan Holdings’ (hereafter ‘S’), a related company of R Corporation, with the promise that this would allow them to invest in a mining project in Congo. They were also told that they would receive monthly dividends of 15%.

To gain the victims’ trust, Lee and the other suspects reportedly claimed, ‘A major general trading company is involved,’ and ‘I live in the United States, and a famous sports figure lives next door.’ They even presented photos with celebrities to back up their claims. However, when the victims began to doubt, they were met with high-handed responses such as, ‘Is that how you treat someone who is trying to help you make money?’ As a result, the victims invested approximately 26 million yen, but it seems they only received a dividend payment once.” (Reported by a national newspaper social affairs reporter)

The victims were not only the men from Hyogo Prefecture. According to the police, Lee and the other five suspects used materials from another company to collect nearly 300 million yen from over 200 people across the country with false investment claims between July 2020 and August 2021. Lee’s accomplice was Akane Kuroda, the 31-year-old female president of S Corporation. She had gained some popularity online, with some calling her cute.

“Lee and Kuroda allegedly used the large sums of money gathered through their fraudulent investment schemes for entertainment expenses such as nightclub visits, overseas travel, and luxury brand purchases. Meanwhile, the police received numerous reports about delayed dividends from ‘R Corporation.’ However, the police have not disclosed whether the suspects have admitted or denied the charges.” (Same source)

The magazine’s photographer captured images of the suspects right after their arrest on November 6. Lee showed no sign of remorse, walking straight ahead toward the police station. Kuroda, who appeared sulking in the backseat of the police vehicle, did not look at the press.

The police are continuing their investigation, as there may be other victims of R Corporation’s cobalt investment scam across the country.