These people were probably afraid their own fraudulent applications would be exposed. There are signs that this kind of scam spread by word of mouth, so this case is likely just the tip of the iceberg.

These people were probably afraid their own fraudulent applications would be exposed. 

If only police focused more on the realm of hard evidence and not mere conjecture.

No. There have been multiple companies charged in this type of thing. Only the one case about foreigners made the big news.

MickeliciousToday  08:38 am JST

These people were probably afraid their own fraudulent applications would be exposed. 

If only police focused more on the realm of hard evidence and not mere conjecture.

Given this -

He said the news of their arrest apparently triggered a flood of canceled aid applications and returned funds.

I think they are permitted some speculation.