Ex-Mizuho Bank official nabbed for alleged fraud over fake investments

TOKYO, June 6 Kyodo -
A former employee of Mizuho Bank was arrested Saturday on suspicion of
swindling 18 million yen from a 69-year-old man in Tokyo over bogus investments
in U.S. government bonds, police said.
Sadao Nomura, 52, allegedly defrauded the man, who is chairman of a company
operating a public bath, out of the money in November 2003 by falsely claiming
that Mizuho Bank manages high-yield investments involving U.S. government
bonds, which are not offered to ordinary customers, according to the
Metropolitan Police Department.
Mizuho Bank does not deal with U.S. government bonds, the police said.
The police suspect Nomura swindled a total of about 780 million yen from the
man between 2003 and 2008 and about 460 million yen in total from 18 others
including his former co-workers at the bank.
Nomura, however, paid back 540 million yen in total to the victims as interest
payments, the police said.
Nomura admitted to the allegation, saying he spent the money on horse racing
and investment in stocks, according to the police.
The fraud came to light after Nomura rejected the company chairman's request to
cancel part of his investments last year and the chairman then consulted with
the bank, the police said.
The bank dismissed Nomura last September.
==Kyodo