Complaint eyed against funds for failure to reimburse, pay dividends+

TOKYO, Oct. 18 Kyodo - A group of investors is considering filing a complaint against two Tokyo
investment partnerships that have secured around 600 million yen in investments
by using government-issued credit transfer certificates, saying the
partnerships failed to pay dividends and reimburse invested funds, sources
familiar with the matter said Saturday.
The partnerships, represented by several men in Tokyo, have secured investments
from around 250 people nationwide in connection with the leasing of
power-saving equipment, the sources said.
Elderly people are known to compose a large proportion of the investors in the
No. 1 and No. 2 global warming measures investment partnerships, according to
the sources.
The partnerships offered guaranteed principal investments as well as an annual
return of 6-7 percent when soliciting investments. Investments were made in
increments of 100,000 yen. When funds were transferred to a designated bank
account, a contract, a credit certificate and a copy of a credit transfer
certificate issued by the Justice Ministry were sent to the investor.
In November last year, investors were notified by a lawyer for the
partnerships' representatives that dividend payments could not be made because
of a problem with the leasing business. Investors said the partnerships have
not responded to their demands for investments to be reimbursed, apart from
returning a limited amount of funds.
Three members of the partnerships told Kyodo News that they were fooled by
other members of the partnerships.
Credit transfer certificates -- issued by a regional legal affairs bureau --
are intended to prevent problems such as duplicate transfers but they do not
require proof that a credit has been issued. The certificate says in fine print
at the bottom that it does not prove the existence of a credit.
==Kyodo