Shigeru Echigo, a Deutsche Bank AG salesman in Tokyo who was charged with bribery for spending too much on entertaining clients, has left the firm.
Echigo, whose pension fund sales department at the bank’s Japanese securities unit was closed in December after his arrest, is no longer an employee, said Takayuki Inoue, a Tokyo-based spokesman for Germany’s biggest bank.
Deutsche Securities Inc. became the first brokerage to be penalized in Japan for breaching client entertainment rules after regulators found that staff provided “substantial benefits” to pension fund officials. It spent 6.3 million yen ($61,500) on clients from 2010 to 2012, the Securities and Exchange Surveillance Commission said Dec. 5. The Financial Services Agency ordered compliance improvements a week later.
Echigo, whose first hearing date at the Tokyo District Court hasn’t been set, couldn’t be reached for comment. Tokyo police said he spent about 900,000 yen entertaining a Mitsui & Co. pension executive with trips abroad, golf, and wine and meals in 2012.
Deutsche Securities closed Echigo’s department, which had four other sales staff, and vowed to cut pay for five senior executives and increase compliance staff. Mitsui said it regretted the arrest of its former executive, who left the Tokyo-based trading company in May.
Inoue declined to comment further on Echigo’s departure, including when he left. The bank spokesman also declined to say whether any employees from the pension solution group were punished.
The case is 2967/Wa/2013, Tokyo District Court.