Two Suspected of Manipulating Stock Prices With False AIDS Claim
TOKYO (AP) _ A medical school professor and the former head of a software company are suspected of manipulating stock prices by spreading false reports that an AIDS vaccine was being developed.
Officials of Japan’s securities watchdog raided more than 10 locations today, including the home and offices of Tsutomu Matsuzaki, former president of TSD Co., a defunct computer software development company in Tokyo, a government official said.
Kenji Okuda, professor of bacteriology at Yokohama City University, is also under investigation, the official said on condition of anonymity. No charges have been filed against the two.
In July 1992, Matsuzaki told a news conference at the Tokyo Stock Exchange that his company had started clinical testing of an AIDS vaccine. He said Okuda developed the vaccine.
The price of TSD stock jumped from around 2,000 yen per share (around $20 at the current exchange rate) to 3,650 yen (around $37) after the announcement.
But Matsuzaki retracted his announcement three months later, saying the company had not yet received approval to conduct tests.