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Nomura Warned Against Lying After Jefferies Trader Charged

  • Charges against ex-Jefferies trader spurred training session
  • At least one allegedly fraudulent trade done after session
A pedestrian walks past a Nomura Securities Co. branch, a unit of Nomura Holdings Inc., in Tokyo, Japan, on Monday, April 27, 2015. Nomura, Japan's largest brokerage, is scheduled to report fourth-quarter earnings on April 30.
Photographer: Kiyoshi Ota/Bloomberg
Updated on

Nomura Holdings Inc. held a training session after a former Jefferies & Co. managing director was indicted for fraud and encouraged its traders not to lie -- but that didn’t stop the fibbing to customers about bond prices, according to U.S. prosecutors.

Three former Nomura traders are accused of increasing the spread on their trades and generating about $7 million in additional revenue by lying about how much they paid for debt. Ross Shapiro, Michael Gramins and Tyler Peters pleaded not guilty and are scheduled to go to trial in October.