Foreign residents in Japan using retirement services should exercise caution following the arrest of executives from "Moomuri," a major retirement agency service, for illegal kickback schemes involving lawyers. The case, reported by NHK, highlights serious violations of Japanese legal ethics laws and raises concerns about the retirement service industry that many expats rely on when leaving their jobs. According to NHK, the president and another executive of the company operating Moomuri were arrested on suspicion of illegally receiving compensation by referring clients to lawyers. Japanese law strictly prohibits non-lawyers from receiving fees for legal referrals, a regulation designed to protect consumers from conflicts of interest and ensure legal services maintain professional standards. Investigations revealed that referral fees from lawyers were paid under the guise of "support donations" to a labor union, apparently attempting to disguise the illegal payments. However, authorities discovered the money was actually deposited into company accounts rather than union funds, suggesting deliberate efforts to conceal the arrangement. Police sources indicated that the operating company initially proposed the referral fee arrangement to the lawyers, actively soliciting the illegal payments. On February 5, 2026, Tokyo Metropolitan Police referred two lawyers who accepted these referrals to prosecutors for violating the Attorneys Act. The lawyers allegedly paid kickbacks to Moomuri's operators in exchange for client referrals, compromising their professional independence and potentially affecting the quality of legal advice provided to workers seeking to leave their jobs. For expats in Japan, retirement agency services have become increasingly popular as a way to navigate the often complex and stressful process of leaving Japanese companies, where direct resignation can sometimes face resistance. These services typically handle communication with employers, negotiate final payments, and ensure proper procedures are followed. However, this scandal demonstrates that not all providers operate within legal boundaries. The Moomuri case particularly concerns foreign workers because retirement services often become necessary when language barriers, cultural differences, or workplace pressure make direct resignation difficult. When these services illegally partner with lawyers through kickback arrangements, clients may unknowingly receive compromised legal advice influenced by financial incentives rather than their best interests. Japanese labor law provides specific protections for workers wishing to resign, including the right to terminate employment with two weeks' notice for most positions. Workers facing illegal retention practices, unpaid wages, or harassment have legal recourse through labor standards offices and the court system. However, navigating these systems often requires professional assistance, making the integrity of retirement services and legal referrals crucial. The investigation also intersects with broader labor issues in Japan. Separately, NHK reported that Chubu Electric Power's labor union decided to request base salary increases in this year's spring wage negotiations but unusually declined to specify an amount. This decision reportedly relates to ongoing investigations into whether the company underestimated earthquake risks at the Hamaoka Nuclear Power Plant, demonstrating how corporate misconduct can affect labor negotiations and worker advocacy. Expats considering retirement services should verify that providers operate transparently, clearly explain their fee structures, and do not claim to offer legal services unless properly licensed. Legitimate services should refer clients to independent lawyers without financial arrangements that could compromise professional judgment. The Japan Federation of Bar Associations maintains directories of licensed attorneys, and local bar associations offer consultation services, often with multilingual support in major cities. This scandal serves as a reminder that while Japan's labor laws provide substantial worker protections, enforcement depends on ethical service providers and informed consumers. Foreign residents should research retirement services carefully, understand their legal rights independently, and seek second opinions when significant legal issues arise during employment termination.