Reunion of 2 friends in Japan results in $5.7m lawsuit over alleged fraudulent investment schemes

TOKYO - It all began with a phone call out of the blue to a doctor running a cosmetic surgery clinic in Tokyo’s swank Ginza district in the winter of 2014.

“Do you remember me? I’d love to get together after all these years,” the man on the line told the doctor, who had been his childhood friend in grade school.

They had not seen or spoken to each other since they sang together in their local choir some 40 years earlier. Feeling a tug of nostalgia, the doctor agreed to meet.

Ten years after their reunion, the two men, now in their 60s, have been embroiled in a lawsuit over some 700 million yen (S$5.7 million) in damages. The doctor claimed that sum, alleging that his old friend had ruined his life through fraudulent investment schemes.

A few days after the call, the man visited the clinic and said that after working at a traditional Japanese restaurant and a sushi bar, he was now operating an antique shop in Tokyo’s famed Asakusa district.

During their time in the choir, the boys travelled and attended camps together, developing a close friendship. After decades living separate lives, they were meeting on a regular basis.

In March 2015, the man proposed an investment opportunity involving the acquisition of a cosmetic surgery group in Tokyo and the establishment of a company to sell cosmetics.

Expecting high returns, the doctor invested some 30 million yen and became representative director at the new company. However, the venture stalled without any concrete progress.

The doctor ended up shouldering a huge debt due to unpaid office rent and construction costs.

Nonetheless, his friend brought up new investment opportunities whenever possible, telling the doctor: “You can earn eight times your money in one to two months by investing in entertainment-related stocks.”

Another scheme involved a “slot” for a 10 million yen investment. The man told the doctor that if he deposited the money, he would get 1 million yen weekly as a 10 per cent dividend. The doctor claims the transaction amounts grew larger and larger, sometimes reaching tens of millions of yen per deal.

The doctor, who had agreed to help out his childhood friend, finally said he wanted out. The man threatened him, saying: “If you quit midway, you’ll have to pay a huge compensation”. He added that the doctor would not get off “scot-free”.

To raise capital, the doctor sold his condominium and cancelled his life insurance policy. After being driven into a corner where he struggled to cover daily living expenses, he sued the man in 2023.

The defendant argued that the pair had entered into a mutually supportive relationship after their reunion. He said the business failed because the doctor did not actively pursue fundraising, asserting that he never requested large sums of money.

He claimed that due to the doctor’s habitual wastefulness, he had squandered his money and was trying to pass it off as a swindle.

Taking the stand, the doctor described his plight: “He exploited and deceived me relentlessly, all because I kept believing the words of my childhood friend. I lost all my savings and couldn’t even hold a proper funeral for my mother. My life has been destroyed.”

On the other hand, when asked by the doctor’s lawyer why he had decided to make contact with his childhood friend some 40 years later, the defendant claimed he had called a number of people found on the old choir roster.

The doctor submitted six handwritten memos as evidence. The memos contained dates and figures that he claimed were notes he had made each time the man demanded money. The defendant claimed the documents were fake.

In October 2025, in a rare ruling with such high compensation at stake, the Tokyo District Court found the defendant guilty of fraud and ordered him to pay roughly 650 million yen in damages.

The court focused on the fact that the amounts entered nearly matched the amounts actually withdrawn from the doctor’s account. The investment schemes explained by the man were also described in detail, so they were taken as evidence supporting the fraud.

However, the court also determined that the investment proposal for establishing a new company was genuine because a business plan existed and office construction had been under way.

The court reduced the compensation amount, stating that it was possible that the business failed because the doctor suddenly changed his mind and became reluctant to participate in management.

During the direct examination, the defendant did not clearly explain why he had approached the doctor about the business venture. KYODO NEWS