Five former officials from SMBC Nikko have been found guilty in a case involving market manipulation.
In a significant ruling, the Tokyo District Court has found five former senior officials of SMBC Nikko Securities Inc. guilty in a stock price manipulation case. The guilty verdict was handed down in February 2023, and the sentences for the additional convictions were announced recently.
The five former officials, who violated financial instruments and exchange laws between 2019 and 2021, are:
- Makoto Yamada, 48, former head of the company's equity division
- Toshihiro Sato, 63, former deputy company chief
- Trevor Hill, 54, former Senior Managing Executive Officer
- Alexandre Avakiants, 47, former executive officer
- Shinichiro Okazaki, 59, former division head
The sentences for the five were as follows:
- Makoto Yamada: 3 years in prison, suspended for 5 years
- Toshihiro Sato: 2 years and 6 months, suspended for 5 years
- Trevor Hill: 2 years and 6 months, suspended for 5 years
- Alexandre Avakiants: 1 year and 6 months, suspended for 3 years
- Shinichiro Okazaki: 2 years, suspended for 4 years
The method used for the manipulation was placing massive buy orders before block offer transactions. This practice aimed to artificially inflate the stock prices of 10 specific stocks.
Interestingly, all five defendants pleaded not guilty during the trial. However, the court's evidence proved otherwise, leading to the guilty verdict.
It's worth noting that both SMBC Nikko and a former company executive admitted to the charges in February 2023. They were found to have conspired with the five defendants in the same case. The court's verdict in February 2023 was separate from the previous verdicts against the five defendants.
The suspensions mean that the prison sentences will not be served unless the individuals commit another offense within the suspension period. This ruling serves as a reminder of the importance of adhering to financial regulations and laws.
[1] Source: Tokyo District Court Verdict, February 2023 [2] Source: SMBC Nikko Securities Inc. Press Release, February 2023
- The guilty verdict for the five former SMBC Nikko Securities Inc. officials, who were found to have manipulated stock prices, was shared on general-news platforms in February 2023.
- The method used in the manipulation case, which involved placing massive buy orders before block offer transactions, might have implications for future business practices in finance and crime-and-justice sectors.
- The sentencing of the five former SMBC Nikko officials, who pleaded not guilty, was accompanied by suspensions, indicating a second chance for them to follow the law in their future endeavors.
