SMBC Nikko Fined 700 M. Yen over Market Manipulation


Tokyo, Feb. 13 (Jiji Press)--Tokyo District Court on Monday handed down a fine of 700 million yen and an additional penalty of some 4.4 billion yen to SMBC Nikko Securities Inc. over stock price manipulation.

The court, presided by Judge Daisuke Kanda, also sentenced former SMBC Nikko Executive Officer Teruya Sugino, 57, to 18 months' imprisonment, suspended for three years, for violating the financial instruments and exchange law.

Prosecutors had sought a fine of 1 billion yen and an additional penalty of about 4.4 billion yen for the brokerage unit of Sumitomo Mitsui Financial Group Inc. <8316>, and a prison sentence of 18 months, without suspension, for Sugino.

A total of six people were indicted on suspicion of violating the law over the market manipulation, and trials were held first for Sugino and SMBC Nikko as they had admitted to the charges.

Finding that multiple SMBC Nikko executives were involved in illegal price manipulation for a total of 10 issues, the judge said, "As the gatekeeper of the market, they were in a position to ensure the fairness of transactions and the protection of investors, so the level of condemnation is even greater."

[Copyright The Jiji Press, Ltd.]

Jiji Press