Norinchukin fortifies JA Mitsui Leasing after $968m fraud allowance

Norinchukin is in talks with SMBC and other major banks to provide loans to JAML.

The Norinchukin Bank is planning to provide support to its affiliate company JA Mitsui Leasing (JAML).

JAML is making an approximately $968.3m (JPY150.5b) allowance for losses expected from fraud issues in one of its group companies.

Norinchukin said that it is in talks with Sumitomo Mitsui Banking Corporation and other major financing banks to possibly provide subordinated loans in syndicated format to JAML, the Japanese bank said in an announcement posted on 3 February 2026.

JAML’s actions arose due to financial fraud issues in one of its group companies, Katsumi Global LLC (KG), specifically KG’s factoring counterparty company First Brands Group (FBG).

FBG filed a petition under Chapter 11 of the US Bankruptcy Code in September 2025. The founders of FBG and related individuals have since been indicted on charges including financial fraud and other offenses, according to JAML.

“Although various procedures are still ongoing, publicly disclosed information indicates that FBG may have engaged in practices such as inflated billing, fabricated billing, or multiple assignments of considerable amounts of its receivables, and the founders of FBG and other related individuals have been indicted on charges including financial frauds and other offenses,” JAML said.

Norinchukin called JAML an important group for the bank.

“JAML has maintained a stable business platform. It is an important group company of the bank and is expected to continue to achieve business growth going forward,” Norinchukin wrote.

Norinchukin said it will closely watch developments on the case and will take “appropriate actions” related to it.

(US$1 = JPY155.42; Morningstar via Google)