SESC Latest Topics No.16«September 2015»

Last Updated : September 30, 2015

Court injunction against Dream Japan Co., Ltd. and its manager.

«Summary»

In response to a petition filed on July 3, 2015 by the SESC with the Tokyo District Court for an injunction against Dream Japan Co., Ltd. and its manager to prohibit and suspend its trading of stocks to customers and its brokering for sales and purchase of stocks, a court order was issued as per the content of the petition.

Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of YAMAZAKI CO., LTD.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 710,000 yen against an offender who committed market manipulation for twenty days in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offender had committed market manipulation by opposing purchase and sale orders and by successive purchase orders of the shares of YAMAZAKI CO., LTD at a higher price than the contracted price.

Through these techniques, the offender intended to mislead the market into believing that sales and purchases of the shares of YAMAZAKI CO., LTD were thriving, and to cause fluctuations in market prices in his/her favor.

Recommendation to impose an administrative penalty order against an employee of PIONEER CORPORATION for committing insider trading related to shares of PIONEER CORPORATION and ONKYO CORPORATION.

«Summary»

The SESC recommended the Prime Minister and the commissioner of the FSA to impose an administrative penalty order of 960,000 yen against an employee of PIONEER CORPORATION.

The SESC determined, based on an inspection, that the offender had committed insider trading by purchasing shares of PIONEER CORPORATION and ONKYO CORPORATION using the insider information.

Recommendation to impose an administrative penalty order against OPTROM, INC. for making false statements in its disclosure documents

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty order of 99,620,000 yen against OPTROM, INC. ("the company").

Based on an inspection of the company’s disclosure statements, the SESC has determined that the company made false statements in its ongoing disclosure documents and offering disclosure documents, which understated allowance for doubtful accounts on cash misappropriated to the third parties and a long-term loans receivable.

In addition, the company made misstatements in its offering disclosure documents, without appropriate disclosures regarding the result of the anti-social forces check on the relationship between the scheduled subscribers of the stock acquisition rights and anti-social forces, etc., as well as with falsification of disclosures regarding a payee of the issuance expenses, in connection with the company's offering.