Former SMBC Nikko managers found guilty in market manipulation case
The Tokyo District Court handed down suspended prison sentences for the firm's ex-head of equity Trevor Hill and his deputy Alexandre Avakiants, as well as three Japanese former executives. Prosecutors had sought multiyear prison terms for their alleged roles in trying to support stock prices ahead of what are known as block trades.
When the allegations surfaced in early 2022, they shone a spotlight on Japan's financial sector and led to regulatory penalties against the brokerage. The subsidiary of Sumitomo Mitsui Financial Group, Japan's second-largest banking group, posted losses and cut costs in the wake of the revelations as clients took their business elsewhere. The firm's top executives took pay reductions to shoulder responsibility.
Former general manager Makoto Yamada was sentenced to three years' imprisonment, suspended for five years, the court ruled on Tuesday. Hill and ex-deputy president Toshihiro Sato received two and a half years, suspended for five years. Another former general manager, Shinichiro Okazaki, and Avakiants got shorter suspended sentences.
The case underscores the legal risks for foreign professionals working in Japan. The country's justice system has faced criticism for its conviction rate of more than 99%, suggesting to organizations including Human Rights Watch that trials are practically foregone conclusions.
Still, criminal proceedings against foreign business executives are relatively rare in Japan. The most high-profile case in recent years was against Carlos Ghosn, the former Nissan Motor chairman, who was accused of financial misconduct and fled the country before he was tried.
It has been more than two and a half years since prosecutors brought charges against the former SMBC Nikko managers and the firm. Ex-manager Teruya Sugino received a suspended prison sentence in 2023 after admitting to the accusations. SMBC Nikko itself pleaded guilty.
SMBC Nikko resumed block offers in April after renaming them retail offers and introducing a tighter internal monitoring of the transactions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NHK
an hour ago
- NHK
Japan police arrest Vietnamese citizen for alleged murder, robbery in Saga Pref.
Police in Saga Prefecture, western Japan, have arrested a Vietnamese national on suspicion of killing a woman and robbery. A man attacked a woman and her mother with a knife-like object at their home in Imari City on Saturday. Forty-year-old Japanese language teacher Mukumoto Maiko died. Her mother in her 70s suffered neck and other injuries. The assailant fled the scene. Police said they arrested 24-year-old Dam Duy Khang on Sunday night. He lives nearby and is a technical intern trainee. Police believe the suspect entered Mukumoto's home, threatened the daughter with a knife, took more than 10,000 yen, or about 68 dollars, and killed her. The mother reportedly said they opened the front door after the intercom rang, and the attacker then demanded cash and their wallets before slashing at them. The mother also reportedly said she did not personally know the man.
Japan Times
9 hours ago
- Japan Times
China detained activist-singer, says Tibetan exile government
A young Tibetan singer and activist has been detained by Chinese authorities, the India-based Central Tibetan Administration said. Tzukte, popularly known as Asang, was taken into custody sometime in early July after he sang a song eulogizing Tibet's exiled spiritual leader, the Dalai Lama, the CTA said in a statement Saturday. The CTA, which functions as a government-in-exile but is not officially recognized by any country, said the arrest was "part of Beijing's broader campaign to suppress Tibetan voices, specially Tibetan artists and writers". China considers Tibet an inalienable part of its territory and has ruled the region with an iron fist since its troops crushed an uprising for autonomy in 1959. Chinese authorities did not respond to a request for comment. "His detention, without charge or information on his whereabouts, violates international human rights norms and underscores China's ongoing assault on freedom of expression, cultural rights, and religious belief in Tibet," the CTA said. Asang, who is in his twenties, is a student of Gebe, a prominent Tibetan singer supporting the Tibetan cause through his music. Earlier this year, Asang reportedly appeared in public in the Ngawa region of Sichuan province with the word "Tibet" written on his forehead — a gesture that drew widespread praise online but also intensified scrutiny from officials. Rights activists have regularly voiced alarm at Beijing's alleged efforts to erase cultural and religious identity in Tibet.
Japan Times
12 hours ago
- Japan Times
Use of deceased's person's savings for cremation allowed without heirs' consent
The government has notified municipalities and financial institutions that they are now allowed to use the savings of deceased people to cover burial or cremation fees without their heirs' consent, sources said. This is aimed at reducing the financial burden on municipalities, which have shouldered burial or cremation costs when a deceased person's savings deposits could not be used. The measure comes as the number of people dying alone increases. Reflecting lifestyle changes and other circumstances, the proportion of single-person households in Japan rose from 25.6% in 1995 to 38.0% in 2020. Among elderly people age 65 and over, the share of such households jumped from 5.0% to 12.1%. Over 105,000 people died with no one to take care of their remains between April 2018 and October 2021, according to the internal affairs ministry. Under the current law, burial or cremation costs for people who die alone will be paid using their savings deposits, and any shortfalls will be covered by municipalities. However, whether the deceased person's deposits could be used has depended on coordination between municipalities and financial institutions. Municipalities have been denied access to savings accounts in some cases because there were no heirs, and they were required to submit various documents in other cases. In light of this situation, the welfare ministry has revised the guidelines for handling money left by people who died alone, including a new document format for municipalities to submit to financial institutions. The revised guidelines also state that the heirs' consent is not necessary to withdraw the deceased's deposits to pay burial or cremation fees. The central government has been considering this issue since 34 local governments asked for a clarification of related rules in 2024 as part of decentralization reform.
