Overview
- Japan’s Securities and Exchange Surveillance Commission conducted a compulsory search of Mizuho Securities’ headquarters and related locations in late January over suspected insider trading by an employee.
- Mizuho confirmed the investigation on February 16 and said it is fully cooperating with authorities.
- The employee worked in investment banking and is suspected of using nonpublic information on M&A and financing to trade multiple stocks, according to media reports.
- In a separate case on February 17, company executive Lin Xinhai admitted in Tokyo District Court to market manipulation and unlawful access tied to stolen brokerage accounts used to trade a Tokyo Stock Exchange Standard-listed stock.
- Prosecutors sought a three-and-a-half-year prison term, a ¥4 million fine, and about ¥78 million in confiscation, while the defense requested a suspended sentence with a verdict set for March 23.