Yasunori Kagoike and his wife Junko, the former operators of Moritomo Gakuen in Toyonaka, Osaka Prefecture, have been sentenced to prison following their conviction for defrauding the Japanese government. The Osaka District Court delivered the verdict on February 21, 2020, concluding a case that exposed a scheme involving inflated enrollment figures, manipulated land deals, and political connections reaching the highest levels of government.
Between 2011 and 2016, the couple systematically falsified data regarding their school’s student population. Prosecutors demonstrated that Moritomo Gakuen submitted false reports on the number of teachers and children eligible for disability support services. Based on these fabricated figures, the institution claimed approximately 120 million yen in grants from Osaka Prefecture and the city of Osaka. The funds, intended for vulnerable students, were instead diverted for personal use.
Auditors later discovered that the actual number of qualifying students was far lower than what had been reported in official applications. A central element of the case involved the acquisition of government-owned land in Toyonaka for the construction of an elementary school.
In 2017, media reports revealed that Moritomo Gakuen had purchased the property at a price significantly below market value. Investigators linked this discount to the influence of Prime Minister Shinzo Abe, whose wife had previously served as an honorary principal for the school. The relationship facilitated a substantial price reduction, costing taxpayers millions.
Subsequent investigations uncovered evidence that official records had been altered to conceal the true transaction value and obscure the role of political intermediaries. Presiding Judge Takushi Noguchi described the methods used by the defendants as clever and bold, noting that the amount of damage was huge.
The court found that Yasunori Kagoike had received 56.4 million yen in public subsidies from the national government for construction costs between 2016 and 2017. Combined with the illegal disability grants, the total defrauded funds exceeded 170 million yen. The judge emphasized that such actions eroded public trust in both the educational system and the political establishment.
Yasunori Kagoike was sentenced to five years in prison for his role in the fraud. His wife, Junko, received a three-year jail term, which was suspended for five years.
The disparity in sentencing reflected the court’s assessment of their respective levels of involvement. Despite the verdict, both individuals have denied most of the allegations through their legal representation. Yasunori Kagoike is planning to appeal the ruling, arguing that the political context unfairly influenced the judicial process.
Prosecutors maintain that the evidence, including financial records and testimonies, was overwhelming.
