Japan Gripped by the Ongoing Saga of Sugar Baby Lily-chan and Her Host Club Beau
Truth is stranger than fiction as the male escort who milked hundreds of thousands of dollars from his best client, now rotting in a jail cell, returns to court next week.
What’s new: First of all, no, Real Gaijin is not affiliated with the National Enquirer or the Daily Star! However, you can be forgiven for thinking - however briefly - that there might be a connection based on these headlines!
As part of the long saga that has gripped the nation for almost a year at this point, the legal fate of Kabukicho host Hiroshi Tanaka (田中裕志), who received lavish gifts of hundreds of thousands of dollars in cash from the infamous sugar baby Lily-chan, who is now behind bars, is likely to be decided during what could be the conclusion of his trial on Tuesday, September 17, 2024. This story, which is a twisted tale of Romeo and Juliet and definitely a case of truth being stranger than fiction, is likely to make headlines in Japan again next week when we learn the fate of Lily-chan's object of desire, which has led her to financial ruin and a long-term "staycation" behind bars in an orange jumpsuit.
Why it matters: This incident shed light on the social problem of hosukyo (ホス狂), which refers to women who become obsessed with host clubs and ruin their lives in the process.
Catch up quick: First, a disclaimer. While I'll try to "catch you up" quickly, this real-life, literally stranger-than-fiction story is somewhat convoluted. So, bear with me!
Who? There are two main characters to get to know.
Person of Interest #1 is a 26-year-old hostess club escort named Mai Watanabe (渡辺真衣), who goes by the pseudonym Itadaki Joshi Lily-chan (頂き女子りりちゃん). To make it easier to follow along, we'll refer to her as "Sugar Baby Lily-chan" or just "Lily-chan."
While it is not clear if this channel will remain on YouTube for much longer, Lily-chan has posted several of her own videos on the channel with the curious title "Lily-chan is homeless" (りりちやんはホームレスです).”
She had a troubled childhood, having been sexually abused by her father in elementary and junior high school, and had no place at home or school. Lily-chan was eventually able to achieve some measure of "success" by building a lucrative client list of three wealthy sugar daddies in their 50s, from whom she apparently bilked nearly 160 million yen ($1.1 million) in cash between 2021 and 2023. To learn more about this practice, please read Real Gaijin’s "Japanese Young Women Rely on ‘Papa-katsu’ to Make Ends Meet."
Not content to keep her methods of developing new "clients" to herself, Lily-chan had a knack for self-promotion. She built a following in Japan by publishing an online "how-to" manual regarding how to identify, develop, and milk for every dime (or yen, in this case) unsuspecting sugar daddies who fall head over heels for a young, attractive hostess. She sold her "A Reference Book for Sugar Babies" to a 21-year-old woman in Nagoya, who used it to scam two male clients out of 10 million yen ($71,000) in 2022.
Person of Interest #2 is Lily-chan's "boyfriend" whose real name is Hiroshi Tanaka (田中裕志), 27, a legendary top earner among the host clubs of Kabukicho in Shinjuku, Tokyo. He used the pseudonym Ayumu Wolf Valley (狼谷歩), so we'll just call him "the Wolf" for simplicity's sake.
What happened?
Much like Al Capone's ultimate downfall was getting caught for tax evasion, the taxman came after Lily-chan late last year. While she pleaded guilty at the end of her trial in December 2023, in April of this year, the Nagoya District Court sentenced her to nine years in prison and a fine of 8 million yen ($56,000)1. The reason for the fine was the penalty for failing to declare approximately 110 million yen ($771,000) of income and evading income taxes of about 40 million yen ($280,000). Lily-chan was also ordered to pay additional back taxes. However, she has yet to pay anything and is attempting to appeal the verdict.
According to Takahiro Matsumoto, a licensed tax accountant, Lily-chan's tax obligations will not go away despite being behind bars. In addition to the original overdue taxes, a heavy fine of approximately 16 million yen ($113,000) and interest of approximately 5 million yen ($35,000) as a late payment tax at an annual rate of 8.7% are likely to be incurred. In addition, there is an individual resident tax of 110 million yen ✕ 10% = 11 million yen ($78,000), which is also subject to interest. Therefore, the amount of back taxes is expected to exceed 70 million yen ($500,000).
The "only" problem is that the convicted felon, Lily-chan, spent all the money she stole from her sugar daddies at a host club where male escorts work. These establishments are sometimes called kyabakura (キャバクラ). Lily-chan only had a few thousand yen ($20) on her at the time of her arrest. So, the young woman is penniless and now locked up in a prison cell2.
At that time, the tax inspector will probably suspend the “execution of the tax arrears” because it is impossible to collect the amount. If such a suspension of execution is made, there will be no demand from the tax authority, and if the suspension of execution lasts for three years, the tax liability will also be eliminated. Therefore, it is very likely that the tax liability will disappear without actually being paid.
However, the original fine of 8 million yen ($57,000) cannot be waived. If it cannot be paid, which is highly likely, Lily-chan will be forced into detention in a labor camp. Japan does not fool around with delinquent taxpayers!
Her sentence is 9 years in prison, but because the amount of the fine is so high, Lily-chan could be forced to work in a labor camp for a maximum of another 2 years. So, in the end, she may have to spend a total of 11 years in prison, which is a heavy punishment.
Context: The modern hostess bars and host clubs of Lily-chan and the Wolf are probably a far cry from the atmosphere described in Arthur Golden's famous Memoirs of a Geisha, which follows the life of a fictional young woman named Sayuri who is sold into geisha training in Kyoto more than 100 years ago, but there is still some connection. The story explores the world of geisha, women trained in traditional arts and conversation (which could sometimes lead to an intimate connection), and the challenges Sayuri faces as she navigates the complex social hierarchy of this world. She becomes a successful and respected geisha, but her path is marked by loss, love, and betrayal.
At the other end of the spectrum of "women of the night," there is the more blatant style of simply lining up on the street.
In recent years, the rapid increase in the number of tachimbo (立ちんぼ) women engaged in prostitution in the Kabukicho area of Shinjuku in Tokyo has become a social problem. Many of these women can literally be seen standing on a street corner waiting to be picked up. In this real "risky business," they negotiate with clients who approach them about prices, etc., and when they reach an agreement, they move to a "love hotel" or rented room to engage in prostitution.
Recently the number of young prostitutes acting as tachimbo seems to be increasing rapidly. Around 2023, the number of male street prostitutes also increased, and now there are even foreign men who dress as women and work as street prostitutes.
A more "refined" male escort would usually work in a host bar. This is actually nothing new in Japan. Going back hundreds of years, there are many accounts of male equivalents to female geisha. They were called taiko-mochi (太鼓持ち), which literally means drummer but refers to a person who tries to be liked by flattering others. Originally, the term taiko-mochi was used to refer to a job of someone who enlivens a banquet.
Male hosts were also called hokan (幇間). During the Edo period this role included male entertainers whose profession was to perform rakugo (落語、comic monologue) and manzai (漫才、comic storytelling), and to enliven the atmosphere by engaging in witty banter with the audience.
To get a better idea of how the Wolf works, check out the character of Kaede (楓), played by actor Kaito Yoshimura (吉村界人) in the popular Netflix miniseries Tokyo Swindlers (see Real Gaijin article "Tokyo Swindlers, Netflix's New Miniseries, Becoming a Global Hit" for more details). Yoshimura plays the role of a high-earning host at a host club in Kabukicho that was frequented by the deviant nun who was the actual landowner of the property at the center of this story about land sharks.
Go deeper: Conventional wisdom has it that the clientele of host bars tends to be female office workers in their 20s to 40s who are looking to relieve stress while seeking a special experience (think Chippendales). Sometimes they aim to develop a personal relationship with a host, as in Tokyo Swindlers.
However, it turns out that 70 - 80% of the clientele who frequent host clubs are women who, like Lily-chan, are also involved in "night work" (sex industry, hostess bars, etc.). They can afford the high prices - at least at first - and find comfort in sharing their own stories and complaints about working in the sex industry. They tend to be very demanding customers because they work in the same environment. There is also an increasing number of clients in their 20s, just like Lily-chan. This trend is now recognized as a social problem in Japan, as many of these hostesses become repeat customers and tend to spend much more than they can afford at the host clubs, and are sometimes forced into prostitution to pay off their debts.
Just like what happens in the Netflix mini-series, Lily-chan became the Wolf's "ace" or highest paying regular customer. She would visit the host club as often as possible, pushing up the status of her favorite host, and order expensive items (like a champagne tower). Often, before they know it, such women become involved beyond their financial and time constraints.
Lily-chan's favorite host, the Wolf, was good at his job. Not only was he the #1 rainmaker in his host club, but he even made a YouTube video to teach other aspiring hosts how to make more money.
The intrigue: The Wolf demanded huge sums of money from Lily-chan.
"Unlike the other hosts I met, the Wolf had goals for his future other than being a host. I always thought that if I could achieve something useful besides my body or money, I would do anything for him.” - Lily-chan (from a diary entry introduced in court)
She became hopelessly dependent on the Wolf.
"I had to do my best. If I spent even a little less, he would be disappointed. I became obsessed with the idea that I had to give the Wolf 10 million yen ($70,000) every month.” - Lily-chan
She could not help but "give" the Wolf most of her earnings. Lily-chan reportedly spent most of the rest on drugs, leading to multiple overdoses.
After her arrest, the Wolf's involvement became known to the police.
At Lily-chan's trial, her lawyer argued that she was a victim of fraud because she was “forced” to pay tribute to the host, but the judge did not buy this argument.
"There is no room for selfishness and no room for mitigation of the host's motive to obtain funds to contribute to the host club's sales." - Nagoya District Court Judge Yoichi Omura in his ruling
The host's influence was not taken into account in Lily-chan's sentencing.
"I chose the path of a 'spoiled' life as a hostess and drove myself to ruin. Nowadays, the host industry has a strong image of being ‘evil,’ but I think there are many girls who are infected with this ‘evil’ on their own. I would like to see the host club system changed. However, I know that this is not an easy wish to fulfill. In the end, I have to stay strong and make my own decisions in this brutal world.” - Lily-chan, writing in her diary just before she was sent to prison
Eventually, however, the justice system found its way to the Wolf's doorstep, and he was charged with violating the Organized Crime Punishment Law by forcing Lily-chan to pay at least 38.5 million yen ($274,000) in cash at his host club. He was accused of accepting this money knowing that it had been obtained fraudulently. Kazuki Hashimoto (橋本一喜), 34, the manager of Wolf's host club, was also arrested.
The Wolf, who has since "retired" from his former host club, admitted that he knew that Lily-chan had been accused of fraud on social media, but he claimed that he was only thinking about his own sales quota at the time and did not believe that he was facilitating any fraud just by serving customers. He pleaded not guilty when his trial began on August 19, 2024.
However, the Wolf left an electronic trail of shocking photos posted on Instagram before his arrest, in which he bragged about his "criminal activities" and his true identity.
"I'm an accomplice too, and I'll be there when Lily-chan gets caught." - The Wolf wrote in a social media post
In addition, the Wolf routinely posted about his extravagant lifestyle, often surprising his closest friends. In one of them, there was a picture of him next to a stack of 10,000 yen ($71) bills totaling more than 30 million yen ($213,000) in cash and the word "sorry.” He also used the hashtags #scammer and #damagetotal in the description. At the time of the post, his friends thought it was a joke and had no idea he was involved in a real scam.
The Wolf's case is still pending.
Fun fact: The Wolf is also a chess master! He has been playing shogi (将棋), a ancient board game similar to chess, since he was a child. He once aspired, in fact, to become a professional chess player. Even after he became a host, the Wolf used to frequent shogi cafes. He seems to be very confident in his skills and often proclaims, "I am a 5th level (relatively high-ranking) shogi player." Something tells me he might get a chance to play in prison, if that is even possible.
Commentary: I usually try to refrain from swearing, but WTF! This true story is hard to believe. It is now apparent why the ongoing saga of Lily-chan and the Wolf has captured the attention of the Japanese public.
Despite the clean veneer of its tidy streets and ultra-efficient transportation system, beautiful historical landmarks, world-famous fresh food, and friendly demeanor of its people, this sad tale is a sober reminder that Japan has a seedy underbelly that sometimes catches up with its young victims who are unable to escape to safety.
Since Lily-chan seemed to be very aware of her crimes and must have known that what she did was wrong, the judge was right to throw the book at her. That said, she was a victim of child abuse and a lack of parental support, which certainly led her astray. It’s a sad situation.
While the Wolf may end up winning his case simply because he was not directly involved in the fraud against the three sugar daddies that Lily-chan was pursuing, based on what is known about the case, it seems that he was very aware of how he was taking advantage of her and where her money was coming from. So, my guess is that he may escape justice, but the Wolf very much bears a degree of responsibility.
What’s next: While we probably won't hear much, if anything, from Lily-chan for more than a decade, the next scheduled date in the Wolf's trial has been set for just a few days from now, on Tuesday, September 17, 2024.
The Wolf has publicly stated that he has returned 18 million yen ($128,000) to the victims of fraud, although there are few details about exactly whom he has repaid. He has also pledged to volunteer at a Japanese chess school in the future. Right! Someone is pandering to the judge...
Stay tuned for updates.
Links to Japanese Sources: https://news.yahoo.co.jp/articles/de0a140d41b53aa40e19d78cc524256c7306c4fd, https://www.tokai-tv.com/tokainews/feature/article_20240423_33965, https://www.jprime.jp/articles/-/29729, https://hostjob.jp/magazine/4488/, https://news.goo.ne.jp/article/tokaitv/nation/tokaitv-20240820-2144-35907.html, and https://www3.nhk.or.jp/tokai-news/20240820/3000037046.html.
#MaiWatanabe #HiroshiTanaka #ItadakiJoshiLilyChan #SugarBaby #ItadakiJoshi #SugarDaddy #Kabukicho #hostess #HostessBar #host #HostClub #tachimbo #prostitution #fraudster #AyumuGaugau #taikomochi #hokan #kyabakura #SexWorker #NightWorker #SexIndustry #頂き女子りりちゃん #頂き女子 #パパ活 #脱税 #渡辺真衣 #田中裕志 #狼谷歩 #歌舞伎町 #ホステス #ホスト #立ちんぼ #姫 #売春 #詐欺師 #太鼓持ち #幇間 #キャバクラ #風俗嬢 #キャバクラ嬢 #性産業 #性風俗産業 #ホス狂 #キャバ狂い #嫉妬 #太客 #シャンパンタワー #被り #闇バイト #ホストクラブ
The prosecution had actually demanded a 13 million yen ($92,000) fine and 13 years' imprisonment.
It is highly unlikely that Lily-chan will ever pay the tax or any of the penalties that will continue to accrue while she is in prison. The interest owed is likely to grow by another 40 million yen ($284,000) while she is incarcerated for the next 9 years. Thus, by the time Lily-chan is able to get out of prison, her total obligations could exceed $1 million.
This is honestly really sad. Obviously she committed crimes but Lily-chan sounds like a classic case of “hurt people hurt people” (and I’m guessing her father is not in prison for his abuse of her, right..)
Really tough for me to feel bad for her much older clients whom she fleeced. Guessing their names haven’t been released publicly. Feel bad for their wives and kids.
I remember being a teenager in the early 2000s when I first found out about host & hostess clubs through gyaru blogs on the internet. The fascination was strong at first (I mean, some of them look like j-idols or anime characters come to life - at least then they did) - but it ended pretty quickly once I learned more about how actually miserable they must be and how their families treat them (if they’re even still in touch.) That hostesses drained lonely perverts of their money to only then have hosts drain the same lonely hostesses of that money - just one of the vicious cycles that’s part of that world - and I see it still is, of course.
Like I said, this whole case and everything about it just makes me sad. :(
Hostess clubs and maid cafes are occasionally the bane of top professional sumo rikishi as well; they start getting brought into those when younger by wealthy stable supporters- older men who have "old-fashioned tastes". When the rikishi gets to salaried level, it's him that sometimes has to entertain said supporters, in a manner they're comfortable with; and that has led to at least two multi-basho suspensions I can think of, for breaking lockdown protocols during the pandemic.