Former Director Arrested in 175 Million Yen Pachinko Fraud Case

Tomoharu Koshino, the 63-year-old former representative director of the Electronic Authentication System Council, has been arrested by the Metropolitan Police Department on suspicion of special breach of trust.

Authorities allege that between April 2022 and February 2023, Koshino orchestrated a scheme to inflate the costs of approximately 24,500 smart units, which are electronic devices used to manage ball counts in pachinko parlors. The council, a non-profit organization designed to ensure transparency in pachinko sales data, pays manufacturers for these devices through its own systems.

Investigators believe Koshino instructed suppliers to submit inflated invoices for parts. The resulting discrepancies, totaling approximately 175 million yen, were allegedly funneled to Koshino via a paper company under the guise of consulting fees. These funds were reportedly used for personal expenses, including the purchase of a condominium. Police are currently investigating whether additional fraudulent activities occurred.