Internet service firm chief nabbed over cyberspace scheme

The 49 year old is alleged to have deceived two people in February and March 2009 to join the Internet virtual world by lying to them that major companies are taking part

PTI | July 7, 2011



The chief of Internet service firm Biz International has been arrested on suspicion of enticing people to join a cyberspace service, which police believe is linked to a pyramid scheme, on false information, police said.

Shigeo Ishihara, 49, is alleged to have deceived two people in February and March 2009 to join the Internet virtual world by lying to them that major companies are taking part and that users can engage in real estate business.

The company collected roughly 9.1 billion yen from about 25,000 members between June 2007 and May 2009 by selling a set of business materials that contained a DVD of the virtual world, according to the police who suspect the business of being a massive scam.

Makoto Miyanouchi, 53, and the two executives of his company MIT were arrested June 14 on suspicion of soliciting investment without required registration in 2009 in connection with the scheme.

Prosecutors indicted Miyanouchi on Tuesday, but freed the others without enough evidence to decide the course of action.

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