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Animate Group's C-labo Card Shop Chain Accused of Tax Evasion

The Animate Group's C-labo card shop chain revealed on Thursday that the company and its former representative director Keiichirō Nishiura have been accused of violating corporate tax law. The announcement stated the company has already filed a revised tax return under the guidance of the National Tax Agency, paid the full amount due, and is continuing to cooperate with an investigation by the Tokyo District Public Prosecutor's Office.

The Jiji.com news website reported on Thursday that the company was suspected of tax evasion worth 45 million yen (about US$335,000). The website said Nishiura has been indicted.

C-labo claimed its investigation and the National Tax Agency's investigation both found that Nishiura had personally embezzled and misappropriated money. C-labo added after the investigation the company promptly removed Nishiura from his position, and it currently has no relationship to Nishiura. C-labo has already filed a criminal complaint against Nishiura.

Authorities claimed Nishiura had pretended to purchase rare Yu-Gi-Oh! and Pokémon cards from a male acquaintance to reduce the company's income. Authorities claimed he then used a false invoice to transfer funds from C-labo to the acquaintance's bank account, and then later refunded 95% of that money to his personal bank account.

C-labo stated it will strengthen its fraud countermeasures, educate employees, conduct operational audits, and create a whistleblowing contact in order to regain trust and strengthen its internal management.

C-labo was founded in January 2004, and manages the C-Labo stores and GAMERS stores.

Sources: C-labo, Jiji.com via Hachima Kikō