The Securities and Exchange Surveillance Commission conducted the inspection of Cresvale International Limited, Tokyo Branch ("CIL, Tokyo Branch" hereafter), found the following legal violations and sent the recommendation to the Commissioner of Financial Supervisory Agency to take disciplinary action against CIL, Tokyo Branch.

1. With the involvement of the Branch Manager at that time and others, CIL, Tokyo Branch solicited the purchase of Princeton Notes, based on promises that the CIL, Tokyo Branch would pay money to the persons who were in charge of the purchase in customer corporations.

Such conduct was found to constitute the Clause 1, Article 17 (the Article 2-2 (Solicitation with promise of special profit) of the Ministerial Ordinance concerning Rules and Regulations Governing the Sound Management of Securities Companies), of the Law on Foreign Securities Firms (The Law which was in force before the Law No.107 of 1998).

2. With the involvement of the Branch Manager at that time and others, CIL, Tokyo Branch gave customers falsified information such as the main points on corporate bonds and the material for solicitation which were not true.

Such conduct was found to constitute the Clause 1, Article 14 (the Article 4-1 (Giving falsified information related to securities and other trading) of the Ministerial Ordinance concerning the Regulations of Conducts of Securities Companies Amended (Before and on November 30, 1998, the Clause 1, Article 17 of the Law on the Foreign Securities Firms (The Law which was in force before the Law No.107 of 1998))) of the Law on the Foreign Securities Firms.

3. Concerning the transactions of the Princeton Notes of a certain customer, with the involvement of the Branch Manager at that time and another, CIL, Tokyo Branch deliberately submitted falsified reports which did not express actual contents required by the contract.

Such conduct was found to constitute the Article 37-3 (Submission of falsified reports to customers) of the Law on Foreign Securities Firms (The Law which was in force before the Law No.107 of 1998).

4. With the involvement of the Branch Manager at that time, CIL, Tokyo Branch lent a customer purchase money for the security which the company had underwritten, when the company sold the security to the customer.

Such conduct was found to constitute the Clause 1, Article 17 (Lending by an underwriter of a security issue, when it sells the security it has underwritten, to any purchaser of such security any purchase money during the six-month period immediately following the date on which it became such underwriter) of the Law on Foreign Securities Firms (The Law which was in force before the Law No.107 of 1998).

     Accordingly, today, the FSA has ordered CIL, Tokyo Branch to suspend all the securities business operations (except for such operations as returning the Princeton Notes to its customers, and accepting sales order of securities on safe deposit without soliciting) from November 1, 1999 to January 14, 2000 and to remove the directors concerned in the above conducts.