Tokyo police , arrested Shinji Tanimoto, 37, president of Albatross Co., and his 31-year-old wife, Shiori, an employee of the firm, on suspicion of violating Japan’s Attorneys Act. The arrests center around allegations that Albatross, the operator of the resignation assistance service “Momuri,” illegally referred clients to lawyers in exchange for fees.
The Metropolitan Police Department alleges that between and , Tanimoto and his wife referred six individuals who sought Momuri’s resignation proxy services to legal counsel, receiving ¥16,500 (approximately $110 USD based on current exchange rates) per referral. This practice is prohibited under Japanese law, which restricts lawyer referrals to licensed professionals.
According to police, the payments were allegedly disguised as donations to a non-existent labor union, a deliberate attempt to conceal the illegal nature of the transactions. Both Tanimoto and his wife have denied the allegations, stating they did not believe their actions constituted a legal violation.
Momuri’s Business Model and the Rise of Resignation Services
Albatross Co.’s Momuri service gained prominence by offering to handle the often-difficult process of resignation for employees in Japan. The company acts as an intermediary, informing employers of an employee’s intention to leave, a practice particularly appealing in a corporate culture where direct confrontation is often avoided. The service’s popularity reflects a growing trend of workers seeking assistance in navigating the complexities of Japanese employment law and workplace dynamics.
Investigation Extends to Partner Law Firms
The police investigation is not limited to Albatross. Authorities are also scrutinizing the lawyers at the two partner law offices that allegedly received the referrals, suspecting them of violating the same Attorneys Act. A search of Albatross’s headquarters and the offices of the law firms was conducted last , with police analyzing seized materials and interviewing individuals connected to the case.
Alleged Attempts to Conceal Referral Fees
The police investigation suggests a deliberate effort to obscure the referral fees. The ¥16,500 payments were reportedly channeled through partner law offices as outsourcing fees related to Albatross’s online advertising business or as support for a purportedly existing labor union. However, authorities believe both the advertising business and the labor union are largely nominal, created solely to facilitate the illegal payments.
Clients Included Public Servants and Employees with Workplace Disputes
Among the six individuals referred to lawyers were a public servant lacking collective bargaining rights and company employees facing issues with their employers, such as unpaid wages. This highlights the diverse range of individuals utilizing Momuri’s services and seeking legal assistance during the resignation process.
Adire Law Offices Enters the Resignation Agency Market
The police investigation into Momuri in the fall of prompted a significant shift in the resignation agency industry. Immediately following the scrutiny of Albatross, Adire Law Offices announced its entry into the resignation agency service market, leveraging its existing expertise. Adire has a history of quickly capitalizing on emerging market opportunities.
Financial Implications and Regulatory Scrutiny
The arrests and ongoing investigation raise questions about the regulatory oversight of resignation agencies in Japan. While the concept of assisting employees with resignations is not inherently illegal, the alleged practice of receiving referral fees for legal services without proper licensing is a clear violation of the Attorneys Act. This case could lead to stricter regulations governing the operations of such agencies and a closer examination of their relationships with legal professionals.
The financial impact on Albatross Co. Remains to be seen. The company faces potential fines and legal repercussions if found guilty of violating the Attorneys Act. The negative publicity surrounding the arrests could also damage its reputation and lead to a decline in customer demand. The broader resignation agency industry may also experience increased scrutiny and a slowdown in growth as regulators assess the need for more comprehensive oversight.
The investigation also highlights the potential for conflicts of interest when resignation agencies refer clients to legal counsel. Consumers should be aware of the potential for biased recommendations and ensure they are receiving independent legal advice before making any decisions regarding their resignation or legal rights.
