TOKYO (Reuters) – Tokyo prosecutors have arrested SMBC Nikko Securities Vice President Toshihiro Sato for alleged market manipulation, the Nikkei newspaper said on Thursday.
Sato had been asked to turn himself in to authorities, the Yomiuri said earlier. His arrest follows criminal charges filed on Wednesday by Japan’s Securities and Exchange Surveillance Commission against the company and seven employees.
The watchdog said the brokerage unit of Sumitomo Mitsui Financial Group Inc allegedly bought stocks through proprietary trading to push up prices and ensure block trade deals would not fall through.
Contacted for comment, SMBC Nikko said it was still gathering all the facts.
Sato could not immediately be reached for comment.
(Reporting by Rocky Swift and Miho Uranaka; Editing by Clarence Fernandez)
