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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

i	With the involvement of the manager of the Tokyo Branch, Cresvale solicited the purchase of Princeton Notes, based on promises that the company would pay money to the persons in corporations who were in charge of the purchase. Such solicitations were made to the customers between September 1994 and June 1998.
ii	With the involvement of the manager of the Tokyo Branch, Cresvale solicited the purchase of Princeton Notes, based on a promise that the company would intermediate between a customer and a financial institution in order for the customer to be financed on its settling day. Such solicitation was made to the customer in August 1995.
iii	With the involvement of the manager of the Tokyo Branch, Cresvale solicited the purchase of Princeton Notes, based on a promise to a customer that the company would shift funds between the customer's account and its subsidiary's account, and would intermediate between the customer and a financial institution in order for the customer to be financed. Such solicitation was made to the customer in August 1996.

(Violation of LFSF Article 17(1), which is the law before the amendment in 1998)

(2)

Giving falsified information related to securities and other trading

i	With the involvement of the manager of the Tokyo Branch, Cresvale gave customers falsified information such as the main points of corporate bonds and the certificates of balances which were not true. Such information were given on the occasion of trading Princeton Notes between August 1995 and April 1999.
ii	With the involvement of the head of the Stock Market Department, Cresvale gave customers falsified information such as the material for solicitation which were not true. Such information were given on the occasion of trading Princeton Notes between October 1995 and May 1996.

(Violation of LFSF Article 14(1), which is the law after the amendment in 1998)
(Violation of LFSF Article 17(1), which is the law before the amendment in 1998)

(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)

(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)

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