Ex-intelligence chief rearrested in fraud

Ex-intelligence chief rearrested in fraud

07/19/2007
THE ASAHI SHIMBUN

Former security intelligence chief Shigetake Ogata was arrested Wednesday on new fraud suspicions relating to the ownership transfer of real estate belonging to a pro-Pyongyang organization.
Prosecutors rearrested the 73-year-old former director-general of Public Security Intelligence Agency, and Tadao Mitsui, also 73, a former real estate company president, on suspicion of cheating the General Association of Korean Residents in Japan (Chongryon) of 484 million yen.
Prosecutors believe Mitsui received 484 million yen from Chongryon in April for supposed brokerage fees, taxes and other costs incurred by the ownership transfer, sources said.
Sources said Ogata allegedly received 100 million yen of the 484 million yen from Mitsui, fully aware that it had been paid by Chongryon.
On June 28, Ogata, Mitsui and former trust bank employee Koji Kawae, 42, were arrested on suspicion of having cheated Chongryon of real estate in Tokyo by transferring the ownership to Ogata's investment firm, without any payment being made.
The three were indicted Wednesday on charges of swindling Chongryon of the real estate.
In April, Mitsui told Chongryon that he would be able to collect money from investors to buy the land and building that housed the national headquarters of Chongryon.
After receiving the 484 million yen, Mitsui handed over 150 million yen to Kawae and 100 million yen to Ogata, the sources said.
Prosecutors said that Mitsui cheated Chongryon of the money, citing the following three reasons:
・When Mitsui received the 484 million yen, there was little likelihood the trio could actually collect money from investors to buy the real estate;
・Mitsui lied to Chongryon by saying that, "Money is necessary to draw out funds operated in China"; and
・Mitsui misappropriated part of the 484 million yen for purposes unrelated to the purchase of the real estate.
Kawae told prosecutors that he told Ogata in late April that Mitsui had received money from Chongryon, sources said.
Mitsui also made a similar admission to prosecutors, sources said.
Ogata has denied any involvement, telling prosecutors he did not know that the 100 million yen he received was part of the money paid by Chongryon.(IHT/Asahi: July 19,2007)