SESC Accuses Ex-Sumitomo Mitsui Trust Official

Tokyo, March 24 (Jiji Press)--Japan's Securities and Exchange Surveillance Commission sought on Monday criminal charges against a former Sumitomo Mitsui Trust Bank official suspected of trading stocks based on insider information.

Receiving the accusation, the special investigation squad of the Tokyo District Public Prosecutors Office will soon make a decision on criminal prosecution against the 55-year-old man, Hajime Katayama, for his violation of the financial instruments and exchange law, informed sources said.

According to the securities watchdog's complaint, Katayama purchased 25,900 shares in three companies for some 32.1 million yen in total after obtaining tips on planned tender offers respectively for the firms through work between December 2022 and August 2024 while serving as assistant chief and then chief at the bank's stock transfer agency service division.

He is believed to have earned illicit gains of about 29.3 million yen, people familiar with the matter said.

An SESC source said Katayama has already admitted to the insider transaction allegations.

[Copyright The Jiji Press, Ltd.]