Ex-SMBC Nikko Executive's Insider-Trading Conviction Upheld

Former SMBC Nikko Securities Inc. executive Hiroyoshi Yoshioka had his conviction for insider trading upheld by a Tokyo appeal court.

The Tokyo High Court rejected his appeal, finding “no fault” in the original judgment, Chief Judge Takaaki Oshima said Friday. Yoshioka, 54, was convicted by the Yokohama District Court in 2013 and handed a suspended prison sentence of two years and six months.

Yoshioka was a deputy head of investment banking at SMBC Nikko. He began working for Nikko Cordial Securities Inc., the predecessor of SMBC Nikko, on secondment from Sumitomo Mitsui Financial Group Inc.’s banking unit in October 2009.

“We take the court decision seriously, and apologize to our clients for causing great trouble and concern,” SMBC Nikko said in an e-mailed statement to Bloomberg. “We will continue to improve internal controls.”

The Yokohama District Court found that Yoshioka leaked non-public information on three takeover deals, including Hitachi Transport System Ltd.’s acquisition of Vantec Corp. By providing the tips, he helped an individual purchase shares of three companies related to the deals in 2011, according to a court document dated Sept. 30, 2013.

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