Aichi Prefectural Police arrested a 29-year-old man from Nagoya on suspicion of illegally lending money at interest rates exceeding Japan’s legal limit.
The suspect, identified as Tatsuo Ozawa, who described himself as a laborer, was taken into custody on suspicion of violating Japan’s Investment Deposit and Interest Rate Law.
According to investigators, between September 2023 and August 2024, Ozawa allegedly lent ¥800,000 to a man in his 20s while charging a daily interest rate of 3 percent — approximately ten times higher than the legal maximum allowed under Japanese law.
Police say the suspect received a total of approximately ¥2.08 million in interest payments during that period.
Authorities have not disclosed whether Ozawa has admitted to or denied the allegations.
Investigators also believe that the group with which Ozawa was associated may have ties to organized crime groups, commonly known in Japan as yakuza. Police are examining the possibility that the illegally collected interest payments were used as a source of funding for criminal organizations.
The investigation remains ongoing as authorities continue tracing financial flows and potential accomplices connected to the scheme.