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Securities Fraud Japan

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CALIFORNIA | LOCAL
September 8, 1991 | ALAN C. MILLER and MYRON LEVIN, TIMES STAFF WRITERS
The Japanese Buddhist organization affiliated with Soka University, whose expansion plans have generated intense public debate in Los Angeles, is also embroiled in controversy in Japan, where the powerful group has been wracked by a series of scandals. The organization, Soka Gakkai, recently paid $4.5 million in back taxes in Japan in a bizarre tax evasion case involving unreported income from the sale of grave sites to its members.
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BUSINESS
July 30, 1997 | From Bloomberg News
Some 100 investigators raided the offices of Yamaichi Securities Co. today as a scandal over payoffs to a corporate racketeer widened to implicate Japan's fourth-largest brokerage. Reports of the raid sent Japan's main stock index tumbling by as much as 0.5%. Brokerage shares fell 2.5% and Yamaichi fell by as much as 26 yen, or 8.6%, to 275. "People don't want to touch financials--including brokerages," said Isao Takahashi, director of Japanese equities at HSBC James Capel Japan Ltd.
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BUSINESS
July 8, 1991 | LESLIE HELM, TIMES STAFF WRITER
As a deepening securities scandal continues to rock Japan, investigators are unearthing details of a stock scam that offers a rare glimpse of the shady back alleys behind Japan's stock exchanges--how Japan's top brokerage houses appear to play the Tokyo stock market as if they were running a private casino with the odds heavily favoring the house.
BUSINESS
June 5, 1997 | (Bloomberg News)
Prosecutors charged Nomura Securities Co., Japan's largest brokerage, and two former top executives with illegally compensating a gangster for $430,000 in trading losses. The charges were the first in the scandal, which has widened to include the rest of Japan's Big Four brokerages and Dai-Ichi Kangyo Bank Ltd., the nation's third-largest bank.
BUSINESS
February 3, 1992 | From Times Staff and Wire Reports
Stock Manipulation Fines to Be Raised: The Finance Ministry plans to sharply raise the fines for manipulating stock prices and compensating investment losses after a major financial market scandal last year, officials said. Brokerages that manipulate stock prices will be fined up to 300 million yen, or $2.4 million, up from 3 million yen now, the ministry said. The maximum fine for loss compensation will be raised to 100 million yen from 1 million yen.
BUSINESS
August 2, 1991 | From Times Staff and Wire Reports
SEC Queries U.S. Units of Japanese Brokerages: The Securities and Exchange Commission has asked four U.S. subsidiaries of Japan's largest brokerages to submit documents on their operations after revelations of a client payoff scandal in Japan. Officials of the New York-based subsidiaries of the Japanese companies said they are reviewing a lengthy letter from the SEC and will cooperate fully with the regulatory agency's investigation.
BUSINESS
August 27, 1991 | From Times Staff and Wire Reports
Japanese Agency Knew of Stock-Loss Pay-Backs in 1983: Finance Minister Ryutaro Hashimoto said his agency knew in 1983 that brokerages were compensating favored clients for stock trading losses but said the agency didn't know the large scale of the problem until 1989. Instead of taking action against the brokerages, it merely advised them to avoid the practice, Hashimoto said at a lower house budget committee meeting. Seventeen brokerages have admitted that they provided almost $1.
BUSINESS
August 20, 1991 | From Times Staff and Wire Reports
4 Japanese Brokerages Fined: The Tokyo Stock Exchange levied a $21,700 fine against Naigai Securities Co., Aizawa Securities Co., Meiko Securities Co. and Izumi Securities Co. for compensating clients for stock losses. The Japan Securities Dealers Assn. said the compensation totaled $6.3 million for 92 clients between October, 1987, and March, 1990.
BUSINESS
October 14, 1991 | From Times Staff and Wire Reports
Japanese Finance Minister Steps Down: Ryutaro Hashimoto formally bowed out 11 days after submitting his resignation to take responsibility for a string of stock and banking scandals. The minister told Premier Toshiki Kaifu on Oct. 3 that he wished to go. Kaifu asked him to stay on until a series of high-level international finance meetings were completed in Bangkok.
BUSINESS
July 30, 1997 | From Bloomberg News
Some 100 investigators raided the offices of Yamaichi Securities Co. today as a scandal over payoffs to a corporate racketeer widened to implicate Japan's fourth-largest brokerage. Reports of the raid sent Japan's main stock index tumbling by as much as 0.5%. Brokerage shares fell 2.5% and Yamaichi fell by as much as 26 yen, or 8.6%, to 275. "People don't want to touch financials--including brokerages," said Isao Takahashi, director of Japanese equities at HSBC James Capel Japan Ltd.
BUSINESS
May 20, 1997 | From Times Wire Services
Prosecutors raided the Tokyo offices of Dai-Ichi Kangyo Bank on Tuesday to investigate the major bank's possible loans to a corporate racketeer as the Nomura Securities Co. scandal broadened, Japanese media reports said. The raid by more than 100 officers helped drive down Japanese stocks in early trading, led by banks, amid concern that the practices were not to limited Dai-Ichi, traders said.
BUSINESS
February 3, 1992 | From Times Staff and Wire Reports
Stock Manipulation Fines to Be Raised: The Finance Ministry plans to sharply raise the fines for manipulating stock prices and compensating investment losses after a major financial market scandal last year, officials said. Brokerages that manipulate stock prices will be fined up to 300 million yen, or $2.4 million, up from 3 million yen now, the ministry said. The maximum fine for loss compensation will be raised to 100 million yen from 1 million yen.
BUSINESS
October 14, 1991 | From Times Staff and Wire Reports
Japanese Finance Minister Steps Down: Ryutaro Hashimoto formally bowed out 11 days after submitting his resignation to take responsibility for a string of stock and banking scandals. The minister told Premier Toshiki Kaifu on Oct. 3 that he wished to go. Kaifu asked him to stay on until a series of high-level international finance meetings were completed in Bangkok.
BUSINESS
October 9, 1991 | From Associated Press
Japan's government punished Nomura Securities Co. on Tuesday for excessive promotion of a particular stock, ordering the world's largest brokerage to suspend some trading activities for up to six weeks. The Finance Ministry also told Nomura and Japan's next three largest brokerages to halt stock trading in their corporate divisions temporarily for compensating favored clients for stock market losses in the last fiscal year.
BUSINESS
September 19, 1991 | From Reuters
Japan's "Big Four" brokers, bruised by a series of huge scandals and the burst bubble of the Tokyo stock market, cut their profit forecasts drastically Wednesday. One firm, Yamaichi Securities Co., said figures for the first six months of its 1992 fiscal year would probably show the first loss in 28 years. Nikko Securities Co., Daiwa Securities Co. and Nomura Securities Co. also said profits for the fiscal half-year to Sept. 30 would fall about 70% from the year-ago period.
BUSINESS
September 16, 1991 | LESLIE HELM, TIMES STAFF WRITER
Nui Onoue, 61, the curious bar hostess turned millionaire who said she got stock tips from God, is accused of committing massive fraud and recently became insolvent with $3 billion in debts, has come to symbolize Japan's 1980s era of excess. Onoue was arrested late last month on charges of using $2.5 billion worth of bogus certificates of deposits as collateral to borrow money from financial institutions for stock investments.
BUSINESS
July 10, 1991 | TOM PETRUNO
It's pretty easy to be down on Japanese stocks, with a major brokerage scandal crushing investor sentiment there. But let's face it: In a few months, no one will remember the scandal. By then, Japanese stocks will be back to trading on the fundamentals. And those fundamentals are getting interesting again as the stocks plunge in value, say two veteran American money managers who specialize in Japanese stocks. They won't argue that Japanese stocks have reached absolute bottom.
BUSINESS
September 13, 1991 | From Associated Press
The World Bank has removed two top Japanese securities firms from a billion-dollar bond underwriting group, and a newspaper reported that they were penalized because of their ties to gangsters. Nomura Securities Co., the world's largest brokerage, and Nikko Securities said they will seek to be readmitted to the group. The two companies, which have admitted dealing with a former underworld boss, were at the center of a scandal involving compensating favored clients for stock market losses.
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