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American had to forfeit naturalized citizenship due to hiding his lack of relinquishment

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I had a long video chat and exchanged a few brief emails with an American last night who wanted me to share his story with this site. Because of his fear of the U.S. IRS (tax agency), he has asked that I not reveal his identity. I have seen (digitally) much of the paperwork he describes in the account below. The below is a rough transcript and rewrite of what he has told me: David [pseudonym] is a natural-born U.S. citizen who immigrated to Japan in 1997 [confirmed] and lives in western Tokyo and works in the 23 wards of Tokyo. He works in the finance industry [unconfirmed] for a foreign multi-national, and makes "well over ¥10 million a year" [unconfirmed]. He naturalized to Japanese in 2007 [confirmed], receiving his Japanese nationality before losing his American citizenship . In 2009, rather than relinquish his U.S. nationality, he went to city hall and submitted a "Choice of Nationality Form" ( 国籍選択届 { kokuseki sentaku todoke } ) and chose "Jap...