Japan's Securities and Exchange Surveillance Commission filed a criminal complaint with the Tokyo District Public Prosecutors Office alleging insider trading in shares of Makino Milling Co., Ltd., linked to non-public information about a tender offer. The accusation centres on three suspects, including the director and general manager of the investment banking division of Mita Securities Co., Ltd. After becoming aware in late August of negotiations to conclude a tender offer agent agreement between Mita Securities and Nidec Corporation regarding Makino Milling, they allegedly colluded and, without any statutory exemption, bought 329,100 Makino Milling shares between early September and late December before the tender offer was made public. The purchases were made on the Tokyo Stock Exchange and elsewhere under the names of Suspect B and 16 others, for a total of about JPY 2,349.8 million. The complaint cites the Financial Instruments and Exchange Act and Criminal Code accomplice provisions, under which the statutory penalty is up to five years’ imprisonment, a fine of up to JPY 5 million, or both.

Original source View in tracker