S'pore-registered firm accused of swindling $1.2b from 26,000 people in Japan

A Singapore-registered company that promised its members the high life has come under scrutiny in Japan, where four of its top executives are under arrest on suspicion of swindling 135 billion yen (S$1.2 billion) from 26,000 people.

- Walter Sim and Michelle Ng

Sky Premium International is alleged to have masterminded what is Japan's largest scam in violation of the Financial Instruments and Exchange Act, according to Fukuoka Prefectural Police.

It is said to have acted as an investment advisory firm to peddle a financial product that it called Lion Premium, without the authorisation of Japan's Financial Services Agency.

On Feb 22, Fukuoka Prefectural Police arrested four executives, including Atsushi Saito, 45, who is identified in Japanese media reports as the company's chief executive officer, and Shinobu Mizushima, 59, who is said to be the chief sales officer.

The arrests came after police reports were lodged in six prefectures, including Fukuoka, by investors who could not get back their investments.

A series of civil lawsuits against Sky Premium are also pending before the courts, including in Hokkaido, Tokyo and Osaka.

Under Japanese law, suspects can be detained for up to 23 days without indictment. The detention period, however, may be prolonged as they may be rearrested on a different charge.

Sky Premium's current registered address on the 27th floor of SBF Center in Shenton Way, in the heart of Singapore's Central Business District, appeared unoccupied when The Straits Times visited on Feb 27.

The front door was locked and the lights were turned off. From the outside, the office appeared spartan, with a white sign that read "Sky Premium". There was no doorbell.

Three office workers on the same floor told ST that they had never seen the office being used.

One of them had seen people going in and out of the unit only when the company first moved in.