3 Arrested in Japan for Insider Trading over Coronavirus Drug

Society

Tokyo, Feb. 4 (Jiji Press)--Tokyo police arrested three people on Friday on suspicion of buying shares in Japanese startup drugmaker Tella Inc. <2191> on the basis of undisclosed information on the company's planned development of a treatment for the novel coronavirus.

The Metropolitan Police Department arrested Toshiaki Kubota, the 53-year-old president of a construction company, and two others for alleged involvement in insider trading in violation of the Financial Instruments and Exchange Act.

The two others are Heima Yamazaki, a 49-year-old investment advisory company president, and Tsuyoshi Yamamoto, a 43-year-old company executive.

The police suspect that the trio acquired information from an executive of medical equipment developer Cenegenics Japan that the Tokyo-based company and Tella would announce a business partnership to develop a coronavirus treatment. They allegedly bought shares in Tella before the development plan was announced.

The stock price of Tella, which had traded below 200 yen, briefly jumped above 2,000 yen after the announcement of the plan on April 27, 2020. The price then displayed wild swings.

[Copyright The Jiji Press, Ltd.]

Jiji Press