comscore Scandal at Japanese brokerage widens with executive’s arrest | Honolulu Star-Advertiser
Top News

Scandal at Japanese brokerage widens with executive’s arrest

  • ASSOCIATED PRESS
                                People were reflected on a blank electronic stock board supposedly showing Japan’s Nikkei 225 index at a securities firm, in October 2020, in Tokyo. The scandal at a top Japanese brokerage widened as the vice president of SMBC Nikko Securities was arrested Thursday, and the company was charged with stock manipulation.

    ASSOCIATED PRESS

    People were reflected on a blank electronic stock board supposedly showing Japan’s Nikkei 225 index at a securities firm, in October 2020, in Tokyo. The scandal at a top Japanese brokerage widened as the vice president of SMBC Nikko Securities was arrested Thursday, and the company was charged with stock manipulation.

TOKYO >> The scandal at a top Japanese brokerage widened as the vice president of SMBC Nikko Securities was arrested Thursday and the company was charged with stock manipulation.

The arrest of Toshihiro Sato on charges of violating securities regulations followed arrests earlier this month of four other employees of the Tokyo-based company on the same charges.

The company and some employees are accused of propping up stock prices by putting in massive buy orders, prosecutors said.

Those arrested earlier denied wrongdoing, saying they were just carrying out normal procedures, according to Japanese media reports.

Sato’s comments were not immediately available, but the arrest highlights how Tokyo District Prosecutors suspect the top echelons of the company were involved in unlawful stock dealings.

SMBC Nikko did not return calls requesting comment. The company’s CEO Yuichiro Kondo apologized at a news conference earlier this month about the scandal. He said the company was investigating internally to prevent a recurrence.

The latest arrest comes after the Securities and Exchange Surveillance Commission, the government body overseeing stock transactions, filed formal accusations against SMBC Nikko and its workers.

Upon conviction, violation of the Financial Instrument and Exchange Act carries a maximum penalty of 10 years in prison, a 10 million yen ($82,000) fine, or both. A company faces a fine of up to 700 million ($5.8 million).

Comments (9)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up