|July 12, 2021:
Filing criminal charges against Nuts Inc. for using fraudulent means
The SESC filed criminal charges against a suspected company and four suspects with the Tokyo District Public Prosecutors Office for violation of the Financial Instruments and Exchange Act (Use of Fraudulent Means).
The suspected company is Nuts Inc. (hereinafter "suspected company"), which had operated an exclusive medical facility and membership sales businesses etc. and the shares of which were listed on the JASDAQ market established by the Tokyo Stock Exchange, Inc. (hereinafter "TSE"); suspect A was a large shareholder of the suspected company and had virtually controlled and managed the overall business of the suspected company; suspect B was a representative director of the suspected company and had controlled and managed the overall business of the suspected company together with suspect A; suspect C and D had earned commission revenue etc. through their intermediary businesses of fund-raising by listed companies. With regard to the businesses and the properties of the suspected company, the suspects conspired together to maintain and raise the share price of the suspected company and to promote the exercise of the share options which the suspected company issued for the underwriter by announcing false facts on its sales figures in relation to the admission to the above-mentioned facility. In order to promote the exercise of the above-mentioned share options and for the purpose of maintaining and raising the share price, the suspects pretended to have received admission fees from the membership sale in the aforementioned facility and falsely announced that the sales figure of membership in the previous month was 563,000,000 yen through TDnet (Timely Disclosure Network operated by the TSE) on seven separate occasions during the period from June 17, 2019, to December 26, 2019, while the real sales figure for the membership was only 20,000,000 yen received until May of 2019. In this way, the suspects used a fraudulent means for the purpose of carrying out transactions of a security and causing a fluctuation in the market price of a security.
|June 30, 2021:
Filing criminal charges for committing insider trading of the shares of J-LEASE CO.,LTD
The SESC filed criminal charges against two suspects with the Fukuoka District Public Prosecutors Office for violations of the Financial Instruments and Exchange Act (hereinafter, “FIEA”) (Insider trading and providing of insider information).
Around mid-December 2019, suspect A, who was a Representative Director of J・PROTECT Co., Ltd. (hereinafter, “J・PROTECT”), came to know of a material fact that J-LEASE CO.,LTD (hereinafter, “J-LEASE”), the shares of which were listed on the first section of the Tokyo Stock Exchange, decided to form a business alliance with LakalaJapan Co., Ltd in the course of negotiations concerning the Guarantee Consignment Contract etc. between J・PROTECT and J-LEASE. Suspect A provided suspect B with the material fact around late May 2020, before the publication of the material fact, for the purpose of enabling suspect B to make a profit by purchasing J-LEASE shares in advance. As a result, suspect B purchased a total of 90,000 J-LEASE shares for a total of approximately 22,700,000 yen through a securities firm around late May 2020 before the publication of the material fact, although there was no exemption clause applicable under the FIEA.
Around late May 2020, suspect B received the above-mentioned material fact from suspect A and purchased a total of 90,000 J-LEASE shares for a total of approximately 22,700,000 yen through a securities firm before the publication of the material fact, although there was no exemption clause applicable under the FIEA.