Japan Post says a former postmaster in the western city of Nagasaki swindled more than 11 million dollars from customers with false promises of high-interest postal savings.
The man used to work as postmaster at Nagasaki Sumiyoshi post office and is now in his 60s.
Japan Post's in-house investigation found that he fraudulently collected approximately 11.3 million dollars from 62 people, such as acquaintances, relatives and other customers, over 25 years through January 2021.
The former postmaster has returned about 2.5 million dollars to customers as principal and interest related to the fraudulent financial products.
But Japan Post says he claims he spent the rest playing golf, dining and drinking, as well as buying real estate and other things.
Japan Post said it plans to file a criminal complaint with the police. It added that it will fully compensate the victims for their financial losses on behalf of the former postmaster, and charge him for the sum.
It also plans to examine why it failed to detect the case that continued for years and take measures to prevent a recurrence.
Japan Post President Kinugawa Kazuhide expressed his sincere apologies to the public over the matter.