Japan Insurance Firm Prexy Apologizes Over $19.5-Million Scam

The president of Prudential Life Insurance Co. apologized on Friday after around 100 of its employees and former employees were found to have improperly borrowed from or defrauded clients of some 3.1 billion yen ($19.5 million), Kyodo News reported.

The company this month said it had discovered that more than 100 employees and former employees improperly received money totaling roughly 3.1 billion yen from around 500 customers between 1991 and 2025. (Photo: Rs1421, Wikimedia Commons) 

Appearing in public for the first time since disclosing the results of a probe last week, Kan Mabara, CEO and president of the Japanese subsidiary of US-based Prudential Financial Inc., told a press conference in Tokyo that a third-party panel will be launched to compensate affected clients.

“I deeply apologize from the bottom of my heart for causing the public worry and concern,” Mabara said.

He is set to step down on Feb. 1 to take responsibility.

The company said on Jan. 16 it had discovered that more than 100 employees and former employees improperly received money totaling roughly 3.1 billion yen from around 500 customers between 1991 and 2025, including by approaching them with nonexistent investment proposals.

About 2.3 billion yen has yet to be returned.

The widespread fraud came to light after a former employee at the company’s Kanazawa branch was arrested in 2024 for defrauding a client of about 750 million yen under the pretext of investment management.