The scandal in a best Japanese brokerage widened when the vice president of SMBC. Nikko Securities was arrested Thursday and also the business. Was charged with inventory manipulation.
The arrest of Toshihiro Sato on charges of violating securities regulations. Followed arrests earlier this month of 4 additional workers of the Tokyo. Based business on a single costs. Some workers and the business are accused of propping up stock. Prices by setting up substantial buy orders, prosecutors said.
Those arrested previously denied wrongdoing. Thinking they had been simply undertaking regular methods, based on Japanese media reports.
Japanese Sato’s Comments
Sato’s comments weren’t immediately available, but the arrest highlights. Just how Tokyo District Prosecutors believe the top echelons of the organization. Had been associated with illegal inventory dealings.
SMBC Nikko didn’t return calls requesting comment. The company’s CEO Yuichiro Kondo apologized at a news conference earlier this month. About the scandal. He stated the organization was investigating internally to avoid a recurrence.
The newest arrest is after the Securities as well as Exchange Surveillance Commission. The government body overseeing stock transactions. Filed formalized accusations against SMBC Nikko and the employees of its.
After conviction, violation of the Financial Exchange as well as Instrument Act. Has a maximum penalty of ten years in jail, a ten million yen ($82,000) fine. Or perhaps both. A business faces a fine of up to 700 million ($5.8 million).