Kawasaki City to File Criminal Complaint Over ¥550 Million Fraud at Disability Child Support Facility

From TVK-Yokohama via Yahoo! Japan

May 29 2026

Kawasaki – A provider of after-school day services for children with disabilities designated by Kawasaki City has failed to repay more than ¥548 million in fraudulently obtained funds and related charges, and the city has announced its intention to file a criminal complaint.

The company involved is ‘SK Corporation’, based in Kawasaki City’s Tama Ward, which operated the disability child day-service provider ‘Realize’.

According to the city, over a five-year period beginning in 2019, the company allegedly created false service records, making it appear that services had been provided when they had not. It is also accused of inflating claims for government benefit payments.

After the city issued a notice of operational guidance in July 2024, the company’s male representative reportedly came forward and admitted to making fraudulent claims.

More than ¥548 million, including the improperly received funds, remains unpaid. In interviews with city officials, the representative reportedly explained that he engaged in the fraud because of cash-flow problems and said he had no funds available to repay the money.

The city has stated that it considers the conduct to constitute fraud and plans to file a criminal complaint.

Mutsumi Tanno, director of Kawasaki City’s Disability Health and Welfare Department, said:

“The misconduct is extremely malicious. We regard this as a very serious incident. We intend to take the appropriate measures.”