Information

There has been a recent surge in investment fraud cases where victims are deceived into sending money to individuals they meet through social media. Scammers often create profiles that appear wealthy or use attractive photos to lure victims into fraudulent investment schemes.

Don’t Fall for Sweet Promises

Typically, the scammers introduce new and complex investment methods, such as cryptocurrencies and foreign securities, to skillfully lure victims. In many cases, the money is never actually invested in cryptocurrency or securities; the scammer simply disappears with all the funds.

Be careful of phrases like “guaranteed profits” or “principal guaranteed.” If it sounds too good to be true, it probably is. It is crucial to understand that promising a return of principal investment to raise funds is illegal in Japan.

Sending money to someone you’ve only met online is incredibly risky, and recovering your funds can be extremely difficult. Even with legal counsel, retrieving your lost money is very difficult and often impossible.

Beware of Secondary Victimization by Lawyers

While ethical lawyers will clearly explain the risks involved and the low probability of recovering your money, some unscrupulous lawyers may exploit your situation. They might give you false hope and charge exorbitant fees while doing very little to help. They might make token gestures, such as sending faxes to investigative authorities or banks, and claim they have frozen the scammer’s account. However, by that time, the stolen funds are usually long gone.

Be cautious of law firms that heavily advertise their services for recovering investment fraud losses, as some may be scams themselves.

Warning message from Kanagawa Bar Association (Japanese only)
https://www.kanaben.or.jp/news/info/2024/post-412.html

What to Do if You Are a Victim of Investment Fraud

• Contact the police.
• Contact the bank where you sent the money.
• If you need legal advice, consult your local bar association and ask if they have a consumer consultation service.

Helpful Resources:

The Japanese Bankers Association:
https://www.zenginkyo.or.jp/en/
Provides information and contact details for reporting financial crimes.

Local bar association:
https://www.nichibenren.or.jp/en/legalinfo/legal.html
Each local bar association has a designated complaints desk to handle complaints about its member lawyers. This complaint desk is called Shimin Madoguchi.

Protect Yourself from Investment Fraud:

• Don’t readily engage with investment offers from people you’ve just met online.
• Don’t be fooled by promises of “guaranteed profits” or “principal guaranteed.”
• If you’re unsure, consult with your family or close friends.
• Utilize consultation services provided by the police or the local bar association.

Our Law Firm Does Not Handle Investment Fraud Cases

We do not handle these types of cases, and even if you consult with us, we can only offer the same advice as above. Therefore, we generally do not accept consultations regarding investment fraud. If you need legal advice, please contact the local bar association.

Employees may be restricted from working for competitors or starting competing businesses after their resignation. This is called a non-compete obligation. (競業避止義務 Kyogyo-hishi-gimu in Japanese)

Non-compete obligations may be imposed on employees after their resignation based on employment contracts or individual agreements.

Validity of a non-compete obligation

However, imposing a non-compete obligation on employees after their resignation is not freely allowed, as it could infringe on their freedom of occupation. Such obligations are interpreted restrictively at the court case.

Specifically, the validity of a non-compete obligation is determined by considering the following factors:

1. The agreement stipulating the non-compete obligation must be legally valid as an employment contract.
2. Factors considered when determining the validity of a non-compete obligation (matters considered in court):
   (1) Whether there is a legitimate business interest of the company to protect.
   (2) Based on (1), whether the content of the non-compete obligation is reasonable in light of its purpose and limited to a necessary scope, and whether the employee’s position justifies the necessity of the non-compete obligation.
   (3) Whether there is a geographical limitation.
   (4) The duration of the non-compete obligation.
   (5) Whether necessary restrictions are placed on the scope of prohibited competitive activities.
   (6) Whether compensatory measures are taken (e.g., increased retirement allowance).

Consult an Expert on Non-Compete Obligations

Companies imposing non-compete obligations risk invalidating the provision itself if they impose excessively strict obligations beyond the necessary limit. Therefore, it is essential to create appropriate provisions tailored to the company’s specific circumstances.

It is advisable to consult with a legal professional, such as an attorney, when establishing provisions related to non-compete obligations. Employees who have questions about the content of a non-compete obligation with their company are also advised to consult with an attorney when considering resignation.

Several prefectures in Japan, including Tokyo and Kanagawa, prohibit the use of earphones while cycling under local ordinances. This is because wearing earphones can make it difficult to hear surrounding sounds and voices, which could hinder safe cycling. In fact, there have been several accidents resulting in fatalities where cyclists wearing earphones collided with pedestrians.

Furthermore, although the Road Traffic Act (a national law) does not explicitly prohibit the use of earphones, cycling while unable to grasp the surrounding situation due to earphone use may constitute a violation of the safe driving obligation. (And, if you are listening to music with earphones, you may be committing this violation.)

Until now, there has been limited enforcement of traffic violations by cyclists. This is because applying penalties under the Road Traffic Act to minor violations can result in a criminal record (criminal fine called BAKKIN), which is considered disproportionate. However, a penalty system similar to that for automobiles will be introduced for cyclists by 2026. This system will impose fines (traffic violation fine called HANSOKUKIN) without resulting in a criminal record. This makes it easier for police to enforce the law, leading to increased enforcement.

While bicycles are a convenient means of transportation, they are classified as light vehicles under the Road Traffic Act and require adherence to traffic rules, just like automobiles. Using earphones can endanger not only yourself but also surrounding pedestrians and vehicles. Please comply with traffic rules and strive for safe cycling.

The Road Traffic Act (Law, 道路交通法) in Japan has been revised and came into effect in November 2024. The penalties for the following acts have been strengthened.

These acts that were previously only punishable by fines (or were not treated as crimes in the first place). Due to changes in the law, these acts may now be punishable by imprisonment. A prison sentence may result in disqualification from certain professions. It can also affect your status of residence in the future.

Some of you may have been biking home after drinking a few alcoholic beverages. From now on, you need to be careful to never ride your bicycle on a day when you have had a few drinks (just like you would with an automobile).

Riding a bicycle while talking on a smartphone or looking at the screen

Previous penalty (before Nov. 2024)

Fine of up to 50,000 yen

Revised Penalty (after nov. 2024)

Imprisonment of up to 6 months or a fine of up to 100,000 yen

If causing a traffic accident or other traffic hazard: Imprisonment of up to 1 year or a fine of up to 300,000 yen

Driving a bicycle while under the influence of alcohol

Before November 2024, only driving while intoxicated heavily¹ was subject to punishment. Under the amended Road Traffic Act, “driving while under the influence of alcohol” (driving while having 0.3 milligrams or more of alcohol per milliliter of blood or 0.15 milligrams or more of alcohol per liter of breath in the body) is now also subject to punishment.

New Penalty:

Up to 3 years imprisonment or a fine of up to 500,000 yen

Even if the driver is not aware that he or she is so intoxicated, it is still a crime if the numerical requirements are met.

1. Driving a bicycle while intoxicated heavily was subject to a penalty from before the amendment of the law. The penalty is much more heavier and can be up to 5 years imprisonment or a fine of up to 1,000,000 yen. ↩︎