In a case where the former president of the operating company of a major discount store "Don Quijote" was arrested for fraudulently recommending an acquaintance to buy his own stock, the Securities and Exchange Surveillance Commission said that the transaction violated the Financial Instruments and Exchange Act. The former president was criminally charged with the Tokyo District Public Prosecutors Office on suspicion of recommendation.
Koji Ohara (57), the former president of Don Quijote's operating company, asked a man he knew to buy his shares in September before the inside information about the TOB = tender offer was released. This month, he was arrested by the Tokyo District Prosecutor's Office on suspicion of recommending a transaction that violated the Financial Instruments and Exchange Act for fraudulent recommendations.
According to the Securities Transactions Observatory, the acquaintance had purchased 76,500 shares for about 430 million yen from early September to early October before the plan was announced. On the 22nd, the former president was criminally charged with the Special Investigation Department on suspicion of recommending a transaction.
According to the people concerned, the acquaintance made a profit of tens of millions of yen by buying and selling stocks.
Former president Ohara initially denied fraud, but has admitted the charges so far.
The Special Investigation Department is expected to prosecute former president Ohara on the 23rd of the detention deadline in response to criminal accusations.