SESC Latest Topics No.47«July 2018»

Petition for a court injunction against Orange-plan, Inc., Gold Mine Co., Ltd., and the two respective managers.

«Summary»

The SESC filed a petition with the Tokyo District Court for an injunction against Orange-plan, Inc., Gold Mine Co., Ltd. (the “Companies”), and the two 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 two respective managers have engaged in Type II financial instruments business without statutory registration.

Court injunction against JG-company Co., Ltd., Master Co., Ltd., S&F Co., Ltd., and the three respective managers.

«Summary»

In response to a petition filed on March 2, 2018, by the SESC with the Tokyo District Court for an injunction against JG-company Co., Ltd., Master Co., Ltd., S&F Co., Ltd., and the three respective managers to prohibit and suspend them from engaging in investment advisory business and Type I financial instruments business without statutory registration, a court order was issued as per the content of the petition.

Recommendation to impose an administrative penalty order against an offender who committed insider trading related to shares of Yurtec Corporation.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose administrative penalty orders of 600,000 yen against an offender who received the information from an officer of Yurtec Corporation.
Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of Yurtec Corporation using insider information 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 USEN CORPORATION using the information provided from an officer of U-NEXT Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 2,810,000 yen against an offender who received information from an officer of U-NEXT Co., Ltd.
Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of USEN CORPORATION using insider information in violation of the Financial Instruments and Exchange Act.

Filing a criminal charge of committing insider trading of the shares of SUMIDA CORPORATION against a suspect.

«Summary»

（Provisional Translation）

The SESC filed a charge against a suspect with the Tokyo District Public Prosecutors Office for violation of the Financial Instruments and Exchange Act (FIEA). The conduct underlying the charge is as described below.
The suspect, who was an outside director of SUMIDA CORPORATION (“SUMIDA”) which listed its shares on the first section of the Tokyo Stock Exchange, Inc. (“TSE”), committed to the operations of SUMIDA. Around late January 2017, the suspect came to know in the course of his/her duty a material fact pertaining to its business or other matters, that the existence of differences, which is regarded under the criteria specified by a Cabinet Office Ordinance, between the publicized forecast figures around late October 2016 and newly calculated forecast figures with regard to an annual dividend and a year-end dividend for the fiscal year ended December 2016.
Although there is no exemption clause applicable under the FIEA, the suspect purchased a total of about 80,000 SUMIDA shares for a total of about 88 million yen in the TSE under the name of A via a securities firm between around late January 2017 and around early February 2017, prior to the announcement of the material fact.
The suspect recommended B to purchase SUMIDA shares several times between around late January 2017 and around early February 2017, prior to the announcement of the material fact for the purpose of making B a profit by purchasing SUMIDA shares in advance. Although there is no exemption clause applicable under the FIEA, following the recommendation by the suspect, B purchased a total of 4,000 SUMIDA shares for a total of about 4 million yen between around late January 2017 and around early February 2017 prior to the announcement of the material fact.
The suspect recommended C to purchase SUMIDA shares several times between around late January 2017 and around early February 2017, prior to the announcement of the material fact for the purpose of making C a profit by purchasing SUMIDA shares in advance. Although there is no exemption clause applicable under the FIEA, following the recommendation by the suspect, C purchased a total of about 27,000 SUMIDA shares for a total of about 30 million yen between around late January 2017 and around early February 2017 prior to the announcement of the material fact.
The suspect recommended D to purchase SUMIDA shares several times between around late January 2017 and around early February 2017, prior to the announcement of the material fact for the purpose of making D a profit by purchasing SUMIDA shares in advance. Although there is no exemption clause applicable under the FIEA, following the recommendation by the suspect, D purchased a total of 3,000 SUMIDA shares for a total of about 3 million yen between around late January 2017 and around early February 2017 prior to the announcement of the material fact.
The suspect recommended E to purchase SUMIDA shares around late January 2017, prior to the announcement of the material fact for the purpose of making E a profit by purchasing SUMIDA shares in advance. Although there is no exemption clause applicable under the FIEA, following the recommendation by the suspect, E purchased a total of 1,000 SUMIDA shares for a total of about 1 million yen around late January 2017 prior to the announcement of the material fact.