MBC Nikko Securities Inc. said that a former executive was arrested Monday for his alleged involvement in insider trading on a tender offer handled by the brokerage.
Japan’s Securities and Exchange Surveillance Commission also said it raided more than 10 locations jointly with prosecutors as part of its ongoing criminal investigation into the case.
The SESC said that Hiroyoshi Yoshioka leaked information of a takeover bid by distribution firm Hitachi Transport System Ltd. for another Japanese company, Vantec Corp., before the official announcement of the deal in March last year. The information was leaked to two employees of an unidentified company, who then passed it to another person who bought Vantec shares before the announcement.
“They were doing (insider trading) on a regular basis and the four collaborated closely to carry out the insider trades,” an SESC official told reporters.
Read the rest of the story: Former SMBC Nikko Executive Arrested.