Vp Of Smbc Nikko Securities Arrested In Stock Manipulation Scandal
Tokyo prosecutors have arrested a vice president of SMBC Nikko Securities for his alleged involvement in a stock manipulation scandal.
Sato Toshihiro, who is 59, was arrested on Thursday on suspicion of manipulating stock prices in violation of the Financial Instruments and Exchange Act.
Sato is suspected of having purchased shares in bulk in April last year in an effort to shore up the prices of certain issues.
He is the fifth senior employee of the securities firm to be arrested in connection with alleged illicit transactions.
Earlier this month, the prosecutors arrested four senior staff members of the firm's equity department, including its former head, Trevor Hill. Sato used to supervise the department.
In voluntary questioning with prosecutors, Sato reportedly said he had been informed of the transactions, but was not aware they were illegal.
In a separate move on Thursday, the prosecutors indicted SMBC Nikko Securities and five senior executives on charges of market manipulation.