Police searched the company's head office in Tokyo, President Masaru Ishii's home in Kawasaki and other places on suspicion Kinmirai failed to make good on dividend promises.

The company promised to pay generous dividends each month based on revenues from "communication fees."

Investors were told that the purchase of a telephony service relay station would earn them monthly dividends that would total close to ¥1 million a year. The stations were priced at ¥11 million apiece.

But the company started falling behind on dividend payments in September and halted them altogether Nov. 20, when it appeared that the firm had shut down most of its nationwide operations and those of its subsidiaries.

The Japan Times Weekly: Dec. 9, 2006
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