More warrants issued over Nomura scandal

Kyodo News

http://search.japantimes.co.jp/cgi-bin/nn20080513a5.html

Prosecutors served fresh arrest warrants Monday on a former Nomura Securities Co. employee and an acquaintance for alleged insider trading involving shares of a subsidiary of major pharmaceutical company Eisai Co., investigators said.

Li Yu, 30, a Chinese national, and his acquaintance, Su Chunguang, 37, a Chinese resident of Japan, are believed to have made about ¥1.4 million through illegal trading of the subsidiary's shares.

All together, they are believed to have gained a total of ¥50 million from insider trading involving shares of 21 companies, investigative sources said.

Li is suspected of learning that Eisai would turn Sanko Junyaku Co., a clinical test drug maker traded on the Jasdaq market, into a wholly owned unit and using that knowledge to purchase 8,000 Sanko shares for about ¥2.6 million in March 2007 through Su's account with a stock brokerage.

Eisai made the plan public the following month.

Li worked in the corporate information division of Tokyo-based Nomura until last December before being transferred to Hong Kong.

The division he worked for in Tokyo is in charge of dealing with information on corporate mergers, acquisitions and takeover bids.

His position is believed to have given him access to confidential information that could be used for insider trading.

Li and Su were first arrested April 22 on suspicion of engaging in insider trading in May 2007 connected to Fujitsu Devices Inc.
The prosecutors have not decided yet whether to indict them and a third suspect, Su's younger brother, in connection with the Fujitsu Devices case.

The Japan Times: Tuesday, May 13, 2008