LTT Bio-Pharma Co., a Tokyo-based biotechnology company arrested two of its former employees as part of a fraud investigation

The company issued a statement after local media reported the arrests of four people suspected of using documents purported to be from Marubeni Corp. to defraud Lehman Brothers Holdings Inc. Marubeni said in a separate statement it would continue to cooperate fully with the investigation. Lehman, the fourth- largest U.S. securities firm, declined to comment on the arrests. LTT Bio-Pharma Co., a Tokyo-based biotechnology company, said police in Japan arrested two of its former employees as part of a fraud investigation. The four people who were arrested raised about 108 billion yen ($996 million) from companies and individuals as part of the fraud, Kyodo News and the Asahi Shimbun said. Some of the money has been recovered and 50 billion yen has not yet been retrieved, Kyodo said, citing police.
Lehman Brothers submitted a complaint against Marubeni Corp. in a Tokyo court on May 28, kicking off a trial in which the New York-based firm is seeking to recover 35 billion yen for alleged fraud involving two of the Japanese trading company's former employees. Marubeni has said it was also a victim of fraud that involved forged documents, and that the two employees were fired. The two LTT employees were Yuzuru Yamanaka, a former president, and Shigenori Saito, former president of medical consultancy firm Asclepius Ltd. Yamanaka was also a Marubeni employee, Kyodo and the Yomiuri newspaper said. Police also arrested Shingo Yamaura, a contract worker at Marubeni when the alleged fraud occurred, and Fumihiro Takahashi, president of a Tokyo-based building planning company, the Asahi and Kyodo said.
Saito has denied the allegations, Kyodo said, citing the police. The Asahi said all but Takahashi have denied the allegations.