Tokyo prosecutors arrested three men Wednesday, including the 59-year-old managing director of a firm affiliated with the nation's largest labor union, on suspicion of embezzling 38 million yen from the company.
The arrests came as special investigators from the Tokyo District Public Prosecutor's Office raided the Tokyo office of UBC, a company with ties to the All Japan Prefectural and Municipal Workers' Union (Jichiro), the same day.
Investigators suspect the money was paid to gangsters who were to stop parties close to UBC from making public accounting irregularities at the firm.