SESC Latest Topics No.23«April 2016»

Last Updated : April 22, 2016

Recommendation for Administrative Action based on Findings of the Inspection of Credit Suisse Securities (Japan) Limited

Notification of Inspection Results to Ocean Blue. LLC

«Summary»

The SESC announced the results of an inspection of Ocean Blue. LLC (“the Company”), a Specially Permitted Business Notifying Person.

Based on an inspection of the Company, the SESC identified that it has made investments in funds that were not certified as such by a Qualified Institutional Investor and has engaged in the investment management business without statutory registration.

Notification of Inspection Results to CHERISH. LLC

«Summary»

The SESC announced the results of an inspection of CHERISH. LLC (“the Company”), a Specially Permitted Business Notifying Person.

Based on the inspection of the company, the SESC identified that it has problems concerning investments in funds managed by Specially Permitted Business Notifying Persons.

Court injunction against F Support Co., Ltd. and its manager.

«Summary»

In response to a petition filed on March 11, 2016, by the SESC with the Tokyo District Court for an injunction against F Support 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 for an administrative action against Supremacy Asset Partners Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against Supremacy Asset Partners Co., Ltd. (“the Company”), a Type II Financial Instruments Business Operator.

Based on an inspection of the Company, the SESC identified that it has (i) dealt in Private Placement of funds, knowing that money contributed to the funds had been misappropriated, and by making false statements to customers, and (ii) dealt in Public Offering of bonds without statutory registration.

Recommendation to impose an administrative penalty order against an employee of a contract negotiator of Nippon Manufacturing Service Corporation for committed insider trading related to shares of Nippon Manufacturing Service Corporation.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 770,000 yen against an employee of a contract negotiator of Nippon Manufacturing Service Corporation.

Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of Nippon Manufacturing Service Corporation using the insider information, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against an officer of SHIFT INC. for communicating insider information and against an offender who committed insider trading using the information provided.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose administrative penalty orders of 3,510,000 yen against an employee of SHIFT INC. (hereinafter referred to as “offender (1)”), and 13,800,000 yen against an offender who received the information (hereinafter referred to as “offender (2)”).

Based on an inspection, the SESC determined that offender (1) had communicated insider information concerning SHIFT INC. and that offender (2) had committed insider trading by purchasing shares of SHIFT INC. using the insider information provided, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against ENERES Co.,Ltd. for making false statements in its disclosure documents

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 258,480,000 yen against ENERES Co.,Ltd. ("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 contained overstatements of sales amounts, by mainly disguising as sales transactions of solar photovoltaic facilities to third parties.

Recommendation to impose an administrative penalty order against Food Planet, Inc. for making false statements in its disclosure document

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 6,000,000 yen against Food Planet, 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 document, which overstated sales amounts from several transactions, in the solar photovoltaic business of its subsidiary, which were actually conducted by a company outside of the company's group, which was run by the company's representative director at that time.

Recommendation to impose an administrative penalty order against SHINNIHON CORPORATION for making false statements in its disclosure documents

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 18,000,000 yen against SHINNIHON CORPORATION ("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, which overstated "Real estate for sale" in inventories, based on excessive appraisals by an external real estate appraiser who was requested to appraise real estate of the company.

Filing criminal charges against Global Asia Holdings Inc. and its former director for submission of an annual securities report containing false disclosure statements.

«Summary»

The SESC filed charges against the suspected company and the suspect with the Tokyo District Public Prosecutor’s Office in violation of the Financial Instruments and Exchange Act. The suspected company, Global Asia Holdings Inc. (it changed its name from Princi-baru Corporation on September 12, 2014), listed its shares on JASDAQ of Tokyo Stock Exchange, Inc. and operated a restaurant. The suspect, who was a representative director and managed the overall business of the suspected company, submitted the annual securities report that contained false statements on material respects to the Commissioner of the Kanto Local Finance Bureau. The false statements include a statement that net assets were about 502,164,000 yen for the consolidated balance sheet of the fiscal year from April 1, 2013 to March 31, 2014, although actual net assets were about 57,827,000 yen, by recording fictitious assets (e.g., sales guarantee deposits) for 445,000,000 yen.