Enten controversy

Kazutsugi Nami talking to the Japanese press.

The Enten controversy involved Kazutsugi Nami, the chairman of Tokyo bedding supplier Ladies & Gentlemen (L&G), arrested by Japanese police on 5 February 2009. He and twenty-one other executives were accused of defrauding 37,000 investors of at least 126 billion yen (approximately US$1.4 billion) between 2001 and 2009. Nami is the inventor of a quasi-currency, "Enten", which he used to attract investors. Some sources put the total amount of the money involved as high as 226 billion yen, which would make it, if proven, to be the biggest investment fraud in Japanese history since Toyota Shoji, an investment group, defrauded investors of 202.5 billion yen in the late '80s.

In order to gain credibility and popularity, Nami's company used famous enka singers such as Takashi Hosokawa in their advertisements. In May 2008, Hosokawa was accused on the Japanese civil court for participating, but he insisted that he was not responsible for the content of their advertisement.

Ladies and Gentlemen, set up in 1987, originally sold futons and health food, and began accepting investment money in 2001. The company's established existence tricked many into believing it was stable. A 65-year-old woman who lost 30 million yen (about US$300,000) saved over four decades was quoted as saying: "I thought the company was fine as it was in business for a long time". Another woman, a 70-year-old who blamed herself for the loss of two million yen (about US$20,000), said: "I had fun and a lively life ... I was stupid. It's my fault as I was greedy."

Since 2004 Nami had been issuing special electronic money which he referred to as Enten (円天, a combination of the Japanese currency name, yen, and the Japanese word for ) to investors who paid at least ¥100,000 (approx. £750, US$1,100). Enten was a virtual currency which Nami expected to become legal tender in the post-recession by which time he will also have become "world famous." Investors were promised 36% annual returns. There was even an "Enten fair" during which participants sang the praises of Nami's investment plan. One woman described the existence of Enten as "wonderful", whilst another said: "It's like a dream, I can buy anything."

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