SESC Latest Topics No.43«March 2018»

Petition for a court injunction against JG-company Co., Ltd., Master Co., Ltd., S&F Co., Ltd., and the three respective managers.

«Summary»

The SESC filed a petition with the Tokyo District Court for an injunction against JG-company Co., Ltd., Master Co., Ltd., S&F Co., Ltd., (the “Companies”) and the three respective managers to prohibit and suspend them from conducting the following activities. Based on an investigation of the Companies, the SESC identified that the Companies and the three respective managers have engaged in investment advisory business and Type I financial instruments business without statutory registration.

Recommendation for an administrative disciplinary action against Lucky Bank Investment Co., Ltd.

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against Lucky Bank Investment Co., Ltd. (hereinafter the “Company”), a Type II financial instruments business operator.
This recommendation is based on findings made in an inspection of the Company, under which the director-general of the Kanto Local Finance Bureau identified that the Company had made misleading descriptions of important matters in relation to the conclusion of financial instrument transaction contracts and their solicitation.
 

Recommendation to impose an administrative penalty order against an officer of Japan Third Party Co., Ltd. for committing insider trading related to shares of Japan Third Party Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 1,200,000 yen against an employee of Japan Third Party Co., Ltd.
Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of Japan Third Party Co., Ltd. using insider information in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against two offenders who committed insider trading related to shares of Proroute Marumitsu Co., Ltd, using the information provided from a contractor of Proroute Marumitsu Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose administrative penalty orders of 1,340,000 yen against an offender who received information from a contractor of Proroute Marumitsu Co., Ltd (hereinafter referred to as “offender (1)”), and of 610,000 yen against an offender who received information from offender (1) (hereinafter referred to as “offender (2)”).
Based on an inspection, the SESC determined that offender (1) had committed insider trading by purchasing shares of Proroute Marumitsu Co., Ltd using the insider information, and that offender (1) had communicated the insider information to offender (2), and that offender (2) had committed insider trading by purchasing shares of Proroute Marumitsu Co., Ltd using the insider information provided, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against an offender who committed insider trading related to shares of Nikko Travel Co., using the information provided from an employee of ISETAN MITSUKOSHI HOLDINGS.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 1,350,000 yen against an offender who received information from an employee of ISETAN MITSUKOSHI HOLDINGS.
Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of Nikko Travel Co., using insider information in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against SOPHIA HOLDINGS 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 6,000,000 yen against SOPHIA HOLDINGS Co., LTD. ("the Company"). Through an inspection of the Company’s disclosure statements, the SESC determined that the Company has made false statements in its ongoing disclosure documents, based on the fact that the Company’s consolidated subsidiary pretended as if it had achieved a sales plan in terms of TV tuner machines which, in fact, was not achieved and therefore, the Company did not appropriately state the loss on valuation of inventory with respect to these machines in the said disclosure documents.