News reports from last week revealed that the Hot Point Group, a nationwide chain of sex clubs, has been accused of concealing income totalling 3.2 billion yen for several years through 2013.

Tax probe

The Osaka branch of the National Tax Agency and others are expected to apply a severe tax penalty to the firm, whose affiliated companies are alleged to have hidden revenue and inflated expenses on tax filings.

According to Nikkan Gendai (Apr. 26), the revelations are be a big blow to the chain, which has established itself as an industry leader.

“Each year, the company spends 1.5 billion yen in print and Web advertising,” says a person working in the fuzoku industry. “As well, voice actor Mitsuo Senda serves as a spokesperson for the chain by appearing in ads on billboards. The company is zealous about raising its visibility, and believes in establishing a sense of security with the customer.”

The Hot Point Group specializes in “fashion health” services, which typically means oral sex as administered by masseuses attired in uniforms. Women are dispatched to customers waiting at hotel rooms or residences.

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