Japanese CEO and Employees Charged in Scheme to Defraud U.S. Navy and Dump Wastewater in Ocean
(STL.News) Three Japanese nationals, including the president and chief executive officer of Yokohama, Japan-based Kanto Kosan Co. Ltd. (Kanto Kosan) were indicted by a federal grand jury Tuesday in connection with an alleged long-running scheme to defraud the U.S. Navy and pollute Japanese waters by dumping contaminated water removed from U.S. Navy ships into the ocean.
Sojiro Imahashi, the president and CEO of Kanto Kosan, Tsuyoshi Ifuku, and Yuki Yamamiya, were charged with one count of conspiracy to make false claims, to commit ocean dumping, and to commit major fraud against the U.S.; four counts of major fraud against the U.S.; and six counts of submitting false claims.
“The defendants deceived the U.S. Navy by willfully failing to satisfy the company’s obligations under $120 million in contracts with the Department of Defense that were designed, among other things, to ensure the company not only delivered the required services to the Navy, but also complied with critical environmental safeguards,” said Acting Assistant Attorney General Nicholas L. McQuaid for the Justice Department’s Criminal Division. “The Criminal Division will continue its efforts to protect the integrity of military contracting and safeguard taxpayer dollars.”
“The defendants deserve to be held fully accountable for their alleged scheme to illegally dump wastewater as it threatened the integrity of the Department of the Navy procurement process, degraded the readiness of the warfighter, and squandered taxpayer dollars and valuable investigative resources,” said NCIS Far East Field Office Special Agent in Charge Tim Mahew.