Police have uncovered a new scam involving investments in pearl farms. According to authorities, a pearl sales firm named Cute defrauded some 2,500 people in out of 5 billion yen .

Cute attracted investors by telling them a ¥1 million investment in the pearl farming business could earn 20 percent interest in 18 months. It guaranteed both the principal and interest payments.

The company began its campaign around 2003. Dividend payments stopped around July 2005.