Tottori City Imposes 3-Month Partial Suspension on Disability Support Facility For Improper Benefit Claims

From BSS via Yahoo! Japan

March 19 2026

TOTTORI – Tottori City announced on the 19th that it has imposed a three-month administrative sanction of “partial suspension of business operations” on a local facility that provides independent living training and employment transition support for people with disabilities, for fraudulently claiming approximately 8 million yen in training and related benefits. The measure includes a halt on accepting new users.

The sanction applies to a facility in Tottori City that offers independent living training and employment transition support services for people with disabilities.

According to the city, between February 2024 and December 2025, the facility continued to claim training and related benefits without applying required reductions, specifically those for insufficient staffing and for failing to prepare individualized support plans.

The violations came to light during a city audit. Additional issues were also identified, including breaches of staffing standards and practices that did not accurately reflect the actual support provided. As a result, the city imposed the three-month “partial suspension of business operations” effective March 19, which entails a ban on accepting new users for independent living training and employment transition support services from April 1 to June 30, 2026.

In response to the city’s investigation, the facility’s representative reportedly stated, in substance, “We were not fully familiar with the system. It is true that we violated the rules, and we apologize.”

The amount of the improper claims is approximately 8 million yen. The city plans to re-examine the amount and seek repayment with an additional 40 percent surcharge.