SMBC Nikko Deputy Pres. Arrested over Market Manipulation
Tokyo, March 24 (Jiji Press)--A deputy president of SMBC Nikko Securities Inc. was arrested by the special investigation squad of the Tokyo District Public Prosecutors Office on Thursday over alleged stock price manipulation.
Toshihiro Sato, 59, is charged with violating the financial instruments and exchange law over his suspected involvement in the manipulation of stock prices conducted by employees of the Sumitomo Mitsui Financial Group Inc. <8316> unit.
Also on Thursday, the special squad indicted SMBC Nikko and five people over the incident, including Makoto Yamada, 44, former head of the company's equity trading section, and Senior Managing Executive Officer Trevor Hill, 51.
Sato was in charge of the equity department, which oversees all block trading deals, at the time of the alleged market manipulation. He is believed to have received reports from Yamada and others about the fraudulent transactions.
Prosecutors believe that buy orders in the manipulation scheme were carried out with Sato's consent.
[Copyright The Jiji Press, Ltd.]