Police Arrest Former Nomura Employee for Alleged Swindling With PM-Japan-Scandal, Bjt
TOKYO (AP) _ A former employee of Nomura Securities Co. was arrested today for allegedly swindling about 20 clients of more than $14.5 million. Nomura said the case was one of personal wrongdoing and that the firm was not involved.
The arrest coincided with a major scandal involving Nomura and three other top securities firms, which has rocked Japan’s stock market.
Earlier today, Nomura and the three other firms - Nikko, Daiwa and Yamaichi securities - disclosed a list of about 200 companies and three individual investors they had compensated for stock market losses.
The four big brokerages reported to the Finance Ministry last week that they had paid $933 million in compensation to favored clients between September 1988 and March 1990.
Although not illegal unless promised in advance, the compensation violated ministry guidelines and angered investors who were not compensated.
A police official, who spoke on condition of anonymity, identified the arrested Nomura employee as Noboru Hanyuda, 44, former chief investment consultant at a Nomura branch office in downtown Tokyo. Nomura fired him on July 3.
In one case, the official said, Hanyuda received $186,000 from a 74-year- old man to buy stock, but allegedly embezzled the money.
Nomura spokesman Michio Katsumata said earlier the company had dismissed Hanyuda and reported the matter to police after receiving complaints from clients in late June.