Logan was turning the pages of the Herald Tribune when he saw a headline which made him choke on his coffee.

Certificates for Bonds Are Bogus, Tokyo Warns Investors

The Ministry of Finance warned investors today about fraudulent financial certificates that have been appearing with increasing frequency in Japan and abroad, especially in the United States. The certificates purport to certify that the ministry will exchange them for Japanese government bonds equivalent to the face amount. The certificates have no legal basis and the ministry never issued such certificates, a ministry official said. Some people who attempted to cash the certificates were arrested in Japan for fraud, but this did not put a stop to the fraudulent securities. Suspects approach investors by either offering to sell the certificates at a heavy discount or by applying for loans with the certificates as collateral, Kyodo said. The ministry has issued warnings through the Ministry of Foreign Affairs to Japanese embassies and consulates general, as well as the U.S. Justice Department, State Department, Federal Bureau of Investigation and Securities and Exchange Commission.