Tokyo Women’s Medical University Ex-Chairwoman Faces Huge Compensation Lawsuits Amid Ongoing Scandals

Numerous suspicions reported before the embezzlement arrest

Although Kenko Iwamoto, the defendant, now faces a massive damages claim from the university, during her tenure as chairperson she herself acted as the plaintiff, attempting to silence critics in court.

“In 2023, members of the alumni organization Shiseikai, concerned about the university’s situation, sent a document to members summarizing various media headlines that had raised suspicions about Iwamoto during her time as chairperson. However, Iwamoto did not allow this. As the university’s representative, she sued the members for defamation, demanding a high damages claim of ¥11 million and bringing the matter to court. This lawsuit could rightly be seen as a so-called SLAPP suit (Strategic Lawsuit Against Public Participation), intended to silence critical voices,” said a university source.

However, this lawsuit brought by Iwamoto ended in January 2024 with a complete defeat for her side. The Tokyo District Court recognized in its judgment that the sharing of criticism and reports regarding university management was done for a public interest purpose.

“The purpose of the defendants (note: the alumni members) in sending the documents was, among other things, to point out issues such as the plaintiff’s failure to provide sufficient explanation of the facts reported in each article, and to call for support in addressing these issues. Therefore, it should be considered that the purpose was solely for the public interest.” (from the judgment)

The court thus acknowledged that the alumni’s actions were motivated by a legitimate concern that the university had not adequately explained the reported matters.

After her arrest, the roles were completely reversed. The newly reorganized university became the plaintiff, filing a lawsuit against former chairperson Iwamoto to claim damages.

According to the complaint, the main issue concerns the legitimacy of salaries paid to two former staff members who were close aides of Iwamoto. These aides were also employed by clinics and corporations personally managed by Iwamoto, as well as by the alumni organization Shiseikai, meaning they could not fully dedicate themselves to university work. Nevertheless, Iwamoto placed them in key university positions and had them receive compensation far beyond what their roles justified. The complaint asserts that Iwamoto was aware that the aides could not dedicate themselves to university duties yet:

“She led the conclusion of each contract that set compensation far exceeding the salaries payable to staff of equivalent positions (full-time employees), thereby causing the plaintiff to incur excessive expenses.”

The university is pursuing this case on the legal basis that Iwamoto violated her duties of care and loyalty as a director of the school corporation. The complaint clearly states that Iwamoto, as a director, breached her responsibilities and caused the university financial damage:

“The defendant, who was a director of the plaintiff (Tokyo Women’s Medical University), is being held responsible for violating her duties of care and loyalty, thereby causing damage to the plaintiff.”

In other words, although she was the top executive entrusted with protecting the university’s assets, she allegedly ignored that responsibility, enriching specific aides at the university’s expense. University evidence shows that while the official salary cap was about ¥550,000 per month, one aide received ¥1.5 million monthly from January 2018 to January 2020. The total improper expenditures for the two aides amounted to ¥139,543,700.

At the time, the university was in severe financial strain, frequently cutting personnel costs, including reducing staff bonuses and freezing raises. The complaint argues that Iwamoto’s responsibility lies in imposing financial burdens on frontline medical staff while continuing extravagant payments to her close aides.

The course of the criminal case and the potential for further lawsuits

“Initially, due to the unprecedented financial deterioration caused by COVID-19, it was decided not to pay bonuses to all staff. However, following the government’s second supplementary budget, medical institutions struggling due to the pandemic were able to receive emergency loans from the Japan Finance Organization for Municipalities under unsecured, low-interest conditions. As a result, bonuses equivalent to one month’s base salary—still far below the usual level—were finally paid.

The defendant was fully aware of these circumstances.

(Omitted) Nevertheless, the defendant caused the plaintiff to incur damages totaling ¥139,543,700.”

Another notable aspect of this lawsuit is that the university is also claiming the costs of the “Third-Party Committee”established to fully investigate the embezzlement as part of its damages claim.

After the Metropolitan Police Department conducted a forced investigation into Iwamoto’s alleged embezzlement, the university had to undertake a thorough investigation led by lawyers. According to the complaint, the total cost of this investigation reached approximately ¥360 million. The university argues that this enormous expenditure also arose directly from Iwamoto’s breach of her duty of loyalty. After subtracting amounts covered by insurance, the university is demanding Iwamoto pay around ¥103,659,481 for this portion.

The approximately ¥243 million claimed in this civil lawsuit covers the excessive personnel costs for aides and a portion of the investigation costs of the Third-Party Committee. However, Iwamoto still faces further scrutiny regarding both legal and financial matters.

The university’s public relations office revealed to FRIDAY Digital that another lawsuit has also been filed against Iwamoto:

“Regarding a total of ¥9.72 million paid under the guise of consulting services, a joint tort-based damages claim was filed on August 12, 2025, against the recipients and former chairperson Iwamoto.”

In addition to the ¥243 million lawsuit, the university is taking rapid legal action over unaccounted consulting fees and other expenditures.

Moreover, the criminal case for which Iwamoto was arrested and indicted involves embezzlement related to new campus construction, with potentially enormous losses. According to the investigation report, during construction contracts worth tens of billions of yen, more than ¥100 million may have flowed to individuals closely connected to Iwamoto.

Regarding damages claims for this matter, the university stated that no decision has been made yet, but the report notes:

“Although E (note: a person close to Iwamoto) stated in the committee hearing that Iwamoto was unaware of the funds returned, E was a senior executive in the management division entrusted by Iwamoto. Even if Iwamoto did not know, as the executive director in charge of management, she bears significant management responsibility.”

The complaint also references the report, stating:

“The investigation report notes numerous suspected acts of misconduct, including the actions relevant to this lawsuit.”

Depending on the outcome of the criminal proceedings, additional lawsuits could be filed.

Requests for comment from Iwamoto’s law office were not answered by the deadline.

The former chairperson, who once used lawsuits to suppress dissent, is now facing severe repercussions. The investigation report names her as “Iwamoto Ichikyo,” highlighting her absolute power within the university. The price she may have to pay could be immense.