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Palau Bank Chairman Facing Likely Legal Action
Real estate news By Pacific
Sunday: January 27, 2008
The Japanese founder of a bank in Palau, which lost its license to operate in 2005, may face legal action by Japan-based investors who say Toshio Masuda has failed to pay out on investments that matured more than a year ago, The Daily Yomiuri reports.
The newspaper, quoting an attorney for disgruntled investors, say Masuda founded Sunra International Bank & Trust Corp. in Palau in March 2005. Masuda was named chairman. According to the report, some investors plan to file a criminal complaint with the Tokyo Metropolitan Police Department claiming Masuda violated Japan’s Investment Deposit and Interest Rate Law.
Masuda promised investors, who put in about US$15 million into the bank, a 10 percent return on time deposits. Those time deposits matured in December 2006, but Masuda has not repaid investors, the newspaper reported. Masuda reportedly also continued to solicit investments in the Palau bank even after it lost its license to operate.
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