| April 11, 2017: |
Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of Forval RealStraight Inc. and six other securities. «Summary» The SESC recommended that the prime minister and the commissioner of the FSA impose an administrative penalty order of 670,000 yen against an offender who committed market manipulation in violation of the Financial Instruments and Exchange Act.
Based on an inspection, the SESC determined that the offender had committed market manipulation through bolstering share prices of Forval RealStraight Inc. and six other securities by successive purchase orders at higher prices than the contracted prices, and through purchase entrustments by placing a large amount of purchase orders of shares of Forval RealStraight Inc. and six other securities at lower prices than the contracted prices, for the purpose of inducing the sale and purchase of securities.
Through these techniques, the offender intended to mislead other persons into believing that the sale and purchase of the securities were thriving and to cause fluctuations in market prices in his/her favor. |
| March 31, 2017: |
Recommendation to impose an administrative penalty order against three offenders who committed insider trading related to shares of Aisei Pharmacy Co.,Ltd. using the information provided from a contract negotiator of a tender offeror of Aisei Pharmacy Co.,Ltd. «Summary» The SESC recommended that the prime minister and the commissioner of the FSA impose administrative penalty orders against offender (1) who received insider information from a contract negotiator of a tender offeror of Aisei Pharmacy Co.,Ltd. and offender (2) and offender (3) who both came to know insider information in relation to the duty of a person who also belongs to the juridical person and has received the information in the course of his/her duty.
Based on an inspection, the SESC determined that offenders (1)－(3) had committed insider trading by purchasing shares of Aisei Pharmacy Co.,Ltd. using the insider information, in violation of the Financial Instruments and Exchange Act.
910,000 yen against offender (1)
720,000 yen against offender (2)
800,000 yen against offender (3) |
| March 31, 2017: |
Recommendation to impose an administrative penalty order against two officers of FueTrek Co., Ltd. and three offenders who committed insider trading related to shares of FueTrek Co., Ltd. using the information provided from the officers. «Summary» The SESC recommended that the prime minister and the commissioner of the FSA impose administrative penalty orders against two officers of FueTrek Co., Ltd., and against three offenders who received information from the officers.
Based on an inspection, the SESC determined that offender (2) had communicated insider information to offender (1) and then offender (1) committed insider trading by purchasing shares of FueTrek Co., Ltd. using the insider information provided, and that offender (1) had communicated the insider information to offender (3) and offender (4) after offender (1) had become an officer of FueTrek Co., Ltd., and then offender (3) and offender (4) had committed insider trading by purchasing shares of FueTrek Co., Ltd. using the insider information provided, in violation of the Financial Instruments and Exchange Act.
5,470,000 yen against offender (1)
2,470,000 yen against offender (2)
450,000 yen against offender (3)
600,000 yen against offender (4) |
| March 27, 2017: |
Filing criminal charges against Arts Securities Co., Ltd, and others suspected of conducting fraudulent means with regard to the Medical Accounts Receivable Securitized bonds. (2) «Summary» The SESC filed charges against two suspected companies and three suspects with the Chiba District Public Prosecutors Office for violation of the Financial Instruments and Exchange Act.
Suspect B was the representative director of the suspected company named OPTI FACTOR CO., LTD (OPT) and managed its overall business. OPT substantially managed the specific purpose company named Opti-Medix Limited (OPM), Medical Relations Limited (MRL) and Medical Trend Ltd (MTL), which issued Medical Accounts Receivable Securitized bonds (MARS).
Suspect A was the representative director of the suspected company named Arts Securities Co., Ltd (ARTS) and managed its overall business including selling MARS and acting as an adviser and instructor of other securities firms which were distributors of MARS.
Suspects C was a director of ARTS and supported the business activities of Suspect A.
In fact, the purchasing amounts of medical accounts receivable underlining the assets of MARS such as 「OPTI-MEDIX Note」, distributed by OPM, 「Private placement note issued by Medical Relations」, distributed by MRL and「Medical Trend Note」, distributed by MTL were far less compared with the outstanding amounts of the notes. OPM, MRL and MTL had to use most of the investors’ money not for purchasing medical accounts receivable, but for making repayments of the principal and interest of outstanding notes.
However, Suspects A, B and C in conspiracy in relation with the business of suspected OPT and ARTS on the occasion of selling MARS conducted the following acts.
No.1: From early December 2014, to early September 2015, they made employees of OPT provide false information to the three securities firms 30 times by using methods such as delivering false investment reports of「OPTI-MEDEX Note」, which overstated the purchase amount of medical accounts receivable underlying the assets of the note.
From December 16, 2014, to around October 2015, they made employees of the four securities firms who did not know the actual investment performance of the note solicit 279 customers of the securities firms to purchase the note (total sales amounts were 2,648 million yen) 40 times by using methods such as delivering proposals which stated that the note was a highly secured financial product since medical accounts receivable underlying the assets of the note were repaid by public institutions.
No.2: From early December 2014, to early September 2015, they made employees of OPT provide false information to the three securities firms 27 times by using methods such as delivering false investment reports of 「Private placement note issued by Medical Relations」, which overstated the purchase amount of medical accounts receivable underlying the assets of the note.
From January 5, 2015, to October 27, 2015, they made employees of the three securities firms who did not know the actual investment performance of the note solicit 90 customers of the securities firms to purchase the note (total sales amounts were 948 million yen) 27 times by using methods such as delivering proposals which stated that the note was a highly secured financial product since medical accounts receivable underlying the assets of the note were repaid by public institutions.
No.3: From early December 2014, to early September 2015, they made employees of OPT provide false information to the three securities firms 30 times by using methods such as delivering false investment reports of 「Medical Trend Note」, which overstated the purchase amount of medical accounts receivable underlying the assets of the note.
From December 8, 2014, to around October 2015, they made employees of the four securities firms who did not know the actual investment performance of the note solicit 148 customers of the securities firms to purchase the note (total sales amounts were 1,094 million yen) 40 times by using methods such as delivering proposals which stated that the note was a highly secured financial product since medical accounts receivable underlying the assets of the note were repaid by public institutions.
Consequently, Suspects A, B and C conducted fraudulent means for the purpose of trading securities.
The SESC appreciates the assistance of the Monetary Authority of Singapore and the U.S. Securities and Exchange Commission in this matter. |
| March 24, 2017: |
Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of DIGITAL DESIGN Co., Ltd. «Summary» The SESC recommended that the prime minister and the commissioner of the FSA impose an administrative penalty order of 12,280,000 yen against an offender who committed market manipulation in violation of the Financial Instruments and Exchange Act.
Based on an inspection, the SESC determined that the offender had committed market manipulation through bolstering share prices of DIGITAL DESIGN Co., Ltd. by opposing his/her own purchase and sale orders at higher prices than the contracted prices, and by successive purchase orders at higher prices than the contracted prices, for the purpose of inducing sales and purchase of securities.Through these techniques, the offender intended to mislead other persons into believing that the sales and purchase of the securities were thriving and cause fluctuations in market prices in his/her favor. |
