SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION
Press Release |
October 22, 1999
The Securities and Exchange Surveillance Commission (SESC) conducted the inspection of Cresvale International Limited, Tokyo Branch (Cresvale) based on the provisions of the Law on Foreign Securities Firms (LFSF) and found legal violations described below.
The SESC sent the recommendation to the Financial Reconstruction
Commission (FRC) and the Commissioner of Financial Supervisory Agency to take disciplinary
action against Cresvale pursuant to Article 29(1) of FRC Establishment Law on October 22,
1999.
(1) | Solicitation with promise of special
profit
(Violation of LFSF Article 17(1), which is the law before the
amendment in 1998) |
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(2) | Giving falsified information related to
securities and other trading
(Violation of LFSF Article 14(1), which is the law after the
amendment in 1998) |
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(3) | Submission of falsified reports to
customers With the involvement of the manager of the Tokyo Branch, Cresvale deliberately made and submitted falsified reports which did not express actual contents required by the contract. Such reports were submitted to a customer on the occasion of trading Princeton Notes in September 1996 and March 1997. (Violation
of LFSF Article 37(3), which is the law before the amendment in 1998) |
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(4) | Extending Credits by Underwriters With the involvement of the manager of the Tokyo Branch, in April 1998, Cresvale lent a customer purchase money for the security which the company had underwritten, when the company sold the security to the customer. (Violation of LFSF Article 17(1), which is the law before the amendment in 1998) |