Former Director and Deputy Director of Japan Nonprofit Arrested For Padding Its Budget

The Japan Times reports that prosecutors on Tuesday arrested the former director and deputy director of the nonprofit foundation, Japan Kanji Aptitude Testing Foundation, alleging they caused ¥260 million damage to the organization by padding its budget.  The suspects are Noboru Okubo, 73, and his eldest son, Hiroshi, 45.

According to prosecutors, the suspects had the foundation conclude unnecessary business contracts with ad agency Media Box, on whose board the two served, from fiscal years 2006 through 2008.  The foundation placed orders to about 20 companies for ads and other business operations during that period.  Prosecutors allege the suspects padded the budget by ¥260 million by disguising Media Box as the agent for those contracts.  Foundation officials said the two suspects and two of their relatives received a total of ¥150 million in compensation as Media Box board members, plus ¥50 million in stock dividends.  Hiroshi Okubo son allegedly proposed the deal with Media Box, and it was approved by Noboru Okubo.  Foundation board members stated that the board neither discussed the deal nor approved it. 

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