SESC Latest Topics No.70＜December 2020＞

Last Updated : December 17, 2020

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.

　　　　　　　　　
November 13, 2020:

Recommendation for administrative disciplinary action against Createjapan Co., Ltd.open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against Createjapan Co., Ltd. (hereinafter, “the Company”), a Type I and Type Ⅱ Financial Instruments Business Operator.

This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau identified that (i) the Company had solicited customers to conclude contracts for financial instruments transaction without confirming, prior to solicitation, whether or not they had the intention to receive solicitation, (ii) the Company had continued to solicit customers to conclude contracts for financial instruments transaction despite the fact that the customers had manifested the intention not to conclude such contracts for financial instruments transaction after being solicited, and (iii) the Company had an insufficient business management system.
November 10, 2020:

Petition to the court for prohibition and suspention against Wealth design Co., Ltd. and its manager.open new window

<Summary>

Based on an investigation of Wealth design Co., Ltd. (hereinafter, “the Company”), the SESC identified that the Company and its manager had solicited shares in foreign collective investment schemes without statutory registration. The SESC filed a petition with the Tokyo District Court for prohibition and suspention of aforementioned activities.
September 11, 2020:

Court issuance prohibition and suspension against GPJ Venture Capital LLC, its senior manager, and its senior corporate executive officer.open new window

<Summary>

In response to a petition filed on March 13, 2020, by the SESC with the Tokyo District Court for a petition prohibition and suspension against GPJ Venture Capital LLC, its senior manager, and its senior corporate executive officer for soliciting shares in collective investment schemes without statutory registration, a court order was issued as per the content of the petition.
August 4, 2020:

Recommendation for administrative disciplinary action against FX PRIME by GMO Corporation.open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against FX PRIME by GMO Corporation (hereinafter, “the Company”), a Type I Financial Instruments Business Operator and an Investment Advisor/Agency.

This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau identified that the Company had made advertisements that significantly conflict with actual facts of matter related to the performance of the Financial Instruments Business.  
June 12, 2020:

Recommendation for administrative disciplinary action against ProgressMind., Co. Ltd.open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against ProgressMind., Co. Ltd. (hereinafter, “the Company”), an Investment Advisor/Agency.
 
This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau identified that the Company  had (i) been lending its name to unregistered business operators, (ii) conducted inappropriate business operations, and (iii) failed to secure a personnel structure sufficient to properly conduct its Investment Advisory/Agency Business.

 

Market Misconduct

November 4, 2020

Recommendation for administrative monetary penalty payment order against an offender who committed market manipulation related to shares of Daiwa Heavy Industry Co., Ltd.open new window

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 9,060,000 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 for the purpose of inducing the sale and purchase of securities through bolstering share prices of Daiwa Heavy Industry Co., Ltd. through purchase entrustments by placing successive purchase market orders or purchase orders at higher prices than the contracted prices and by placing a large amount of purchase orders at lower prices than the contracted 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.
October 20, 2020:

Recommendation for administrative monetary penalty payment order against an offender who committed insider trading related to shares of SOFTMAX CO., LTD.open new window

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 270,000 yen against an offender who received insider information from an officer of SOFTMAX CO., LTD. (hereinafter, “the Company”).

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

False Disclosure Statement

　　　　　　　　　
June 26, 2020:

Recommendation for administrative monetary penalty payment order against Alphax Food System Co., LTD. for making false statements in its disclosure documents.open new window

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 35,770,000 yen against Alphax Food System Co., LTD. (hereinafter, “the Company”). Through an inspection of the Company’s disclosure statements, the SESC confirmed that the Company disclosed false statements in its Annual Securities Report by front-loading sales under the pretext of a consulting service, understating allowances for bad debts concerning accounts receivable, understating arrangement fees concerning a syndicated loan, and failing to record impairments on fixed assets associated with hotel business.

June 16, 2020:

Recommendation for administrative monetary penalty payment order against GLOME Holdings, Inc. for making false statements in its disclosure documents.open new window

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 43,950,000 yen against GLOME Holdings, Inc. (hereinafter, “the Company”). Through an inspection of the Company’s disclosure statements, the SESC confirmed that the Company disclosed false statements in its Annual Securities Report by overstating its sales of fictitious consulting services and goods in the Company’s consolidated subsidiary, and by front-loading its profit from compensation which it received from commercial establishment expropriation.
June 16, 2020:

Recommendation for administrative monetary penalty payment order against Nice Corporation for making false statements in its disclosure documents.open new window

＜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 Nice Corporation (hereinafter, “the Company”). Through an inspection of the Company’s disclosure statements, the SESC confirmed that the Company disclosed false statements in its Annual Securities Report by overstating its unappropriated real estate sales, and excluding an unprofitable subsidiary from consolidation.

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