Tokyo Barrister: Start the law firm bankruptcy

Chapter 928 Unimaginable: Ants and Finance (Part 1)

“Aso was a very capable person when he was at Toyo Bank,” Terada said. “I think you should know that Toyo Bank was our country’s monetary policy authority. Aso had a very profound understanding of how the financial system actually works.”

“Aso, or rather, Dr. Aso,” Terada said. “Speaking of which, he’s also a classmate of yours, Attorney Kitahara.”

"Alumni?" Kitahara replied.

"Yes. Aso holds a PhD in macroeconomics from the University of Tokyo, with a specialization in finance. Subsequently, on the recommendation of his mentor, he went to work at an investment bank on Wall Street. After several years, he returned to Toyo Bank and became a senior researcher at the First Department of the Tokyo Stock Exchange. After that, he joined Toyo Bank as a senior researcher in monetary policy."

"During Aso's tenure, he brought a fresh perspective to the research at Toyo Bank. Later, when he decided to resign and start his own business, we all felt it was a great pity."

"However, it is only natural that someone as talented and dashing as Aso would eventually choose to leave the bureaucratic system. In his own words, he no longer wanted to be a referee, but wanted to experience what it was like to be a player himself. So, he founded a financial company and wanted to make a name for himself."

Terada's narrative vividly portrays Aso as a talented scholar-official who ultimately embarks on an entrepreneurial path.

"So what trouble has he been encountering recently?" Kitahara interrupted Terada's description of Aso.

Terada seemed to ponder for a moment before speaking:

"Perhaps finance is a monster that devours people's hearts. No one is an exception in its presence. Even someone like Aso could not escape destruction."

“The game of making money from money can amplify people’s desires a hundredfold, a thousandfold, or even ten thousandfold,” Terada said. “Money in finance comes too easily. No one can resist the temptation of such a money game.”

"Is he currently under police investigation?" Kitahara pressed directly.

“Your information network is very well-informed.” Terada adjusted his glasses. “You even know that Aso is under police investigation. Right now, this news is only circulating within a small circle. After all, Aso is a former official of Toyo Bank. If this information were to suddenly surface, it would likely cause a huge uproar.”

“It’s the police, not the Financial Services Agency. Does that mean they’re already suspected of committing a crime?” Kitahara continued to confirm.

"Yes."

"What crime?"

“Illegal fundraising,” Terada said.

[Illegal fundraising]

"Illegal fundraising" refers to the act of soliciting funds from the public without legal permission, promising repayment of principal and interest or other investment returns. For example, someone advertising on the street to raise funds for a gold exploration project, promising guaranteed principal and a 20% annualized return, constitutes illegal fundraising. Generally, only financial institutions such as banks and insurance companies are legally permitted to raise funds from the public.

Upon hearing about illegal fundraising, Kitahara frowned.

There is no other reason.

Illegal fundraising cases typically involve a considerable number of victims.

The amounts range from a few hundred to tens of thousands, or even hundreds of thousands.

The amount of money involved is even more staggering.

Imagine if 10,000 citizens participated in an illegal fundraising project.

Each person only needs to contribute 10,000 yen.

The total amount is now 100 million yen.

It appears that Aso used his financial company to promote some kind of investment or wealth management product and publicly offered it to the public.

Later, probably due to mismanagement or something similar, they were unable to deliver on the promised investment returns.

Then the bombshell dropped.

It's easy to imagine how angry the citizens who invested their hard-earned money would be.

The anger of these citizens is estimated to overwhelm the local police station like a vast ocean.

Amidst the overwhelming public anger—

Even if you are a former official of Toyo Bank, you still have to cooperate with the investigation.

Kitahara was familiar with the process by which these types of cases occur.

Initially, they all used high returns as bait.

Subsequently, when the fundraiser used the funds, the project did not generate the expected returns.

Then, the newly raised funds can be used to repay the previous debts. But gradually, it will eventually turn into a Ponzi scheme.

Once it evolves into a Ponzi scheme, its collapse is only a matter of time.

Even if you have a PhD in economics, even if you are a genius.

None of this could stop the collapse of the situation.

Once it collapses, everyone will be buried.

"How much money is involved?" Kitahara asked.

“Approximately 980 billion yen,” Terada replied.

980 billion yen? !
Terada's voice was not loud.

However, the amount of information contained within it is terrifying.

Even Kitahara was taken aback when he heard the amount of money involved.

Because of its size of 980 billion yen, it is already equivalent to the market value of a small listed company.

This means that Aso, through financial games involving transferring money from one hand to the other, created a listed company out of thin air.

"What projects is Aso involved in?" Kitahara pressed further.

Such a large sum of money means that Aso is not just facing "trouble".

This is enough to trigger a regional bank run crisis.

What exactly did Aso do?
How did Aso manage to raise such a large amount of funds?!
“Attorney Kitahara. This is the terrifying thing about finance.” Terada smiled helplessly.

"What exactly is it?"

The Minister of Internal Affairs on the other side remained silent.

"What did he do?!" Kitahara pressed on relentlessly.

It took a while.

Terada slowly began to speak:

"Ant."

The room fell silent.

Ant?

A term that seemed completely unrelated to finance appeared in the mouth of the Minister of Internal Affairs and Communications.

"What does that mean? What does 'ant' mean?"

The young lawyer was clearly also confused, not understanding why the Minister of General Affairs would use the word "ant."

How could Ant Group be involved in a financial fraud involving nearly 100 billion yen?!
What exactly does "ant" refer to?
Kitahara pondered for a moment. However, despite his extensive experience, he couldn't immediately figure out what kind of connection Ant Group could possibly have with finance.

“I’m talking about ants in the literal sense.” Terada’s expression turned serious.

“A creature called 'ant'.”

The wind howled outside the paper window.

For a moment, I felt a chill run down my spine.

Perhaps because of its proximity to the lake, even the most meticulously maintained Japanese-style rooms are not immune to mosquitoes.

Between Kitahara and Terada—

An ant is crawling.

(End of this chapter)