Accusation Regarding Market Manipulation Case Involving Unauthorized Access

  The Securities and Exchange Surveillance Commission today filed an accusation with the Tokyo District Public Prosecutors Office against one corporation and one individual on suspicion of violating the Financial Instruments and Exchange Act through market manipulation. The details of the alleged offense subject to accusation are as follows.

１．Details of the Offense Subject to Accusation

  The suspected corporation, L&H Co., Ltd. (hereinafter referred to as “the suspected corporation”), is a company whose purpose is the import and export of precious metals and the trading of stocks and securities. Suspect A, as the representative director of the suspected corporation, was responsible for overseeing and managing all of its operations. Acting in conspiracy with unidentified individuals, A sought to obtain financial gain in connection with the business or assets of the suspected corporation by attempting to artificially raise the market price of stock of Wilson Learning Worldwide Inc., which are listed on the securities market operated by Tokyo Stock Exchange, Inc., located at 2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo.
  On March 17, 2025, for the purpose of inducing transactions in said stock, A and unidentified individuals through two securities companies under the name of the suspected corporation and ten other names, placed a series of high-priced buy orders and engaged in purchases at rising prices, thereby acquiring a total of 1,394,300 shares of the said stock. Furthermore, under the name of the suspected corporation and through one securities company, they placed a large number of low-priced buy orders of 494,100 shares of the said stock. By these means, they intended to create the false impression that trading in said shares was active. 
  Furthermore, A and unidentified individuals, with the intent to cause fluctuations in the market price of the said stock on the same market and, in addition, to create a false impression that trading in the stock was active and thereby mislead others regarding the status of such trading, agreed in advance to simultaneously sell the said stock under the name of the suspected corporation through one securities company and, at the same price, purchase them under the names of B and eight others through another securities company, thereby conducting matched transactions totaling 527,600 shares and raising the stock price.
  After raising the stock price through these actions, they sold 722,900 shares of the said stock under the name of the suspected corporation through one securities company on the same day on the same market at an artificially inflated price.
  It should be noted that the securities accounts other than those of the suspected corporation were accounts unlawfully accessed and used without authorization by exploiting legitimate account holders’ access rights.

２．Relevant Provisions

　Financial Instruments and Exchange Act
　Article 197, paragraph (2), item (i); Article 197, paragraph (1), item (v) (prior to the amendment by Act No. 68 of 2022); Article 159, paragraph (2), item (i); Article 159, paragraph (1), item (iv); and Article 159, paragraph (1), item (v) of the same Act
　With respect to the suspected corporation, additionally Article 207, paragraph (1), item (i) of the same Act
　With respect to the suspected individual, additionally Article 60 of the Penal Code

3. Other

　Support for this matter has been provided by the Japan Exchange Regulation.