OSAKA -- Osaka prefectural police Sunday arrested a former civil engineering contractor in Tokyo on suspicion of cheating major trading house Nichimen Corp. out of some 270 million yen.
Under contracts between Tangonosuke Goto, 66, and his clients, the Osaka-based Nichimen paid in advance and later received receipts of construction costs, the police said.
Goto, however, is suspected of fabricating an order from a major machinery maker in Tokyo and having Nichimen issue a bill for a construction project in June 1997, it said.
Nichimen said Goto had never received the order and had given fake documents.
The trading house posted some 10.5 billion yen in losses in 1999 in Goto-related business, it said, adding that the police will investigate the extent of his involvement.
Nichimen announced in July 1999 that the company had been a victim of deceit and subsequently dismissed three officials who had been involved in the businesses. An executive in charge of them also resigned to take responsibility.