SESC Latest Topics No.9«February 2015»

Last Updated : February 24, 2015

Notification of Inspection Results to DoorWave Inc.

«Summary»

The Director-General of the Kanto Local Financial Bureau announced the results of an inspection of DoorWave Inc. (“the Company”), a Specially Permitted Business Notifying Person.
Based on the inspection of the Company, the Director-General of the Kanto Local Finance Bureau identified that the Company provided customers with false information for fund solicitation and engaged in Type II financial instruments business without statutory registration, and that money was used for dividends paid to customers and for other purposes.

Court injunction against Masters DPB Limited and its manager.

«Summary»

In response to a petition filed on January 14, 2015, by the SESC with the Tokyo District Court for an injunction against Masters DPB Limited and its manager to prohibit and suspend it from engaging in investment management based on a Discretionary Investment Contract without statutory registration, a court order was issued as per the content of the petition.

Filing criminal charges against TAIYO SHOKAI INC. and its managements for submission of a false securities report

«Summary»

The SESC filed charges against the suspected company and two suspects with the Tokyo District Public Prosecutors Office for violations of the Financial Instruments and Exchange Act. The suspected company, TAIYO SHOKAI INC., listed its shares on Centrex at the Nagoya Stock Exchange, Inc. (The suspected company changed its name from NowLoading Co., Ltd. to the current name on April 1, 2014.)
The two suspects, a representative director and a director of the suspected company, in conspiracy, submitted the suspected company’s annual securities report for the fiscal year ended March 2013. Although net sales were actually 77,448,000 yen, loss before income taxes and minority interests was 50,561,000 yen, and net assets were insolvency of 93,526,000 yen, using methods such as recording fictitious sales, the submitted annual securities report contained a consolidated income statement showing net sales of 221,258,000 yen, income before income taxes and minority interests of 50,798,000 yen, and a consolidated balance sheet showing solvency of 7,833,000 yen.