SESC Latest Topics No.56＜April 2019＞
Last Updated : April 26, 2019
What’s New on the SESC Website
This page contains the latest in events, developments, and updates to the SESC website.
Press Releases
(Following press release is available in Japanese)
Financial Instruments Businesses etc.
| April 19, 2019: | Recommendation for an administrative disciplinary action against Citigroup Global Markets Japan Inc. <Summary> The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against Citigroup Global Markets Japan Inc. (hereinafter "the Company"), a Type I and II Financial Instruments Business Operator, and an Investment Advisor/Agency. |
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| March 12, 2019: | Recommendation for an administrative disciplinary action against FIP Asset Management Co., Ltd. <Summary> The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative disciplinary action against FIP Asset Management Co., Ltd. (hereinafter “the Company”), an Investment Advisor/Agency. |
| March 12, 2019: | Recommendation for an administrative disciplinary action against Triple A Investment Advisor, Inc. <Summary> The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative disciplinary action against Triple A Investment Advisor, Inc. (hereinafter "the Company"), an Investment Advisor/Agency. |
Market Misconduct
| April 5, 2019: | Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of ELNA CO., LTD and two other securities. ＜Summary＞ The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 1,845,000 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 ELNA CO., LTD and two securities by purchase orders at market order for the purpose of inducing the sale and purchase of securities with a large amount of purchasing orders at lower prices. 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. The SESC had recommended on April 11, 2017 that the prime minister and the commissioner of the FSA impose an administrative penalty order against the same offender, which had committed market manipulation in violation of the Financial Instruments and Exchange Act. |
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| March 29, 2019: | Recommendation to impose an administrative penalty order against an offender who used fraudulent means related to shares of WILL GROUP, INC. and four other stocks. ＜Summary＞ The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 960,000 yen against an offender who used fraudulent means in violation of the Financial Instruments and Exchange Act. Based on an inspection, the SESC determined that the offender had used fraudulent means related to shares of WILL GROUP, INC. and four other stocks through sale and purchase entrustments of these securities without limit with closed conditions for the purpose of obstructing the sale and purchase of the relevant securities. Using this technique, the offender intended to mislead other persons into believing that the order statuses of sale and purchase of the securities would be maintained until closing, affecting market prices and then placing buy or sell orders. |
| March 29, 2019: | Recommendation to impose an administrative penalty order against an offender who used fraudulent means related to shares of Livesense Inc. and two other stocks. ＜Summary＞ The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 360,000 yen against an offender who used fraudulent means in violation of the Financial Instruments and Exchange Act. Based on an inspection, the SESC determined that the offender had used fraudulent means related to shares of Livesense Inc. and two other stocks through sale and purchase entrustments of these securities without limit with closed conditions for the purpose of obstructing the sale and purchase of securities. Using this technique, the offender intended to mislead other persons into believing that the order statuses of sale and purchase of the securities would be maintained until closing, affecting the market prices and then placing buy or sell orders. |
False Disclosure Statement
| March 20, 2019: | Filing of criminal charges for submission of an annual securities report containing false disclosure statements against SORGHUM JAPAN HOLDINGS Corp. and suspects. ＜Summary＞ The SESC filed criminal charges against one suspected company and three suspects with the Tokyo District Public Prosecutors Office for violations of the Financial Instruments and Exchange Act (FIEA). The conduct underlying the charges is as described below. The suspected company, SORGHUM JAPAN HOLDINGS Corp. (trade name changed from SOL Holdings Corp., effective October 1, 2016) is a company headquartered in Shinagawa-ku, Tokyo whose purpose is to control and manage another companies which are engaged in productization, and planning, development, sales and import-export etc. of seeds and plant processed products, through its acquisition and holding of the shares or equity interests of the companies. It had its shares listed on JASDAQ of Tokyo Stock Exchange, Inc. (delisted on September 3, 2018). On 30 June 2017, suspect A, the substantial controller of the suspected company, Suspect B, the representative director of the company, and Suspect C, the director of business management of the company, in conspiracy with each other, submitted the annual report containing misstatements on important matters, with regard to its business and property. They submitted to the Director-General of the Kanto Finance Bureau, at the Bureau, by way of recording the data in a file of the computer of the Cabinet Office from an input-output device installed at Shinagawa-ku, Tokyo through electronic data processing system for disclosure, the company’s annual securities report for the fiscal year (from 1 April 2016 to 31 March 2017) with a consolidated cash flow statement which indicated positive JPY 133.741 million of net cash flow from operating activities, although it was actually negative JPY 966.258 million (amounts less than one thousand yen are disregarded), disguising 1.1 billion yen debt loans as sales proceeds of Super Sorghum seed. |
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| December 18, 2018: | Recommendation to impose an administrative penalty order against Stream Co., Ltd. for making investors acquire share warrants in public offering without submitting an amendment report. ＜Summary＞ The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 13,910,000 yen against Stream Co., Ltd. ("the Company"). Through an inspection of the Company’s disclosure documents, the SESC alleged that, although the Company was required to submit an amendment report under the FIEA, the Company solicited share warrants in public offering without submitting the report. As a result, share warrants of the Company, accounted for 309,309,000 JPY were acquired by investors through this offering. |
| December 18, 2018: | Recommendation to impose an administrative penalty order against TRADERS 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 131,700,000 yen against TRADERS HOLDINGS CO., LTD. ("the Company"). Through an inspection of the Company's disclosure documents, the SESC alleged that the Company submitted false statements in its disclosure documents. The details of the false statements were the following; ・its sales were overstated; ・its inventories in renewable energy business of a consolidated subsidiary was overvalued, and ・the Company did not record the impairment loss of goodwill recognized when the subsidiary was consolidated. In addition, the Company solicited a public offering based on offering disclosure documents in which its disclosure documents, including the false statements, were attached. As a result, share warrants of the Company, accounted for 2,660,013,400 JPY, were acquired by investors through this offering. |
| December 14, 2018: | Recommendation to impose an administrative penalty order against SHOKO. 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 24,000,000 yen against SHOKO Co., LTD. ("the Company"). Through an inspection of the Company's disclosure documents, the SESC alleged that the Company disclosed false statements in its annual securities reports and quarterly reports, based on the facts that, through fictitious transactions of silicon carbide, the Company's consolidated subsidiary overstated its sales, did not record allowance for bad debts of the transactions and did not record the impairment loss of goodwill recognized when the subsidiary was consolidated. |
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