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Tokyo Police Arrest Six Linked to GIL in Alleged Unregistered Investment Scheme Worth ¥870 Billion

Investigators are tracking the money behind an offshore product that promised 12% yearly returns.

Overview

  • Tokyo Metropolitan Police, which announced the arrests Thursday, detained Osaka Yoji, 50, and Yamada Takeho, 65, along with four others on suspicion of violating Japan’s financial securities law.
  • Authorities allege the group solicited investments without a government license from May 2018 to October 2023, pitching a British Virgin Islands vehicle with a “principal guarantee” and 12% annual yields.
  • Police estimate the operation raised about ¥870 billion from roughly 7,300 people since 2014, including a single investment of about ¥330 million.
  • The recruiting ran under Global Investment Lab, using about 1,000 members to court acquaintances at study sessions and seminars and to seek contributions of ¥3 million or more.
  • Investigators seized nondisclosure agreements and are examining how the funds were run and moved, with reports that investor payouts stopped after June 2024.