Saturday, February 7, 2009

Made in Japan ponzi scheme anyone?

The Straits Times of Singapore reported this morning a Japanese business executive has been accused of defrauding thousands of investors of at least $1.4 billion usd.

Kazutsugi Nami, 75-year-old chairman of now bankrupt bedding supplier L&G K.K., was arrested last week for allegedly swindling at least $1.4 billion by promising 36 per cent annual returns.

Kazutsugi Nami, chairman of now bankrupt bedding supplier L&G K.K. of Tokyo,
speaks to the press before being arrested by police. -- PHOTO: AFP

Nami was able to fool investors by building first gaining their confidence, and then proceeding to introduce his own version of electronic money called 'enten'. Nami was able to manage to get his clients to use the company money to purchase products at bazaars and online shopping centers.

According to the Sports Nippon tabloid in Japan, Nama had hopes to extend his scheme abroad. In Japan many of Nami's victims are elderly people who where happy to see their savings
remain at the same level, even if they where spending 'enten.'

"Because of the financial crisis, countries will adopt the enten in three years' time,' he told reporters before his arrest last week. 'I will start shining and become world famous. I will certainly move the world."
Said Nami.