Five Former SMBC Nikko Employees Found Guilty in Market Fraud Incident
In a landmark ruling on Tuesday, July 22, 2025, the Tokyo District Court found five former senior officials of SMBC Nikko Securities Inc. guilty of stock price manipulation. The defendants, including Makoto Yamada, Toshihiro Sato, Trevor Hill, Alexandre Avakiants, and Shinichiro Okazaki, violated the financial instruments and exchange law between 2019 and 2021 by placing massive buy orders for 10 different stocks before conducting block offer transactions.
The convictions mark a significant development in the case, which has been under investigation since 2021. The defendants, who held prominent positions within the company, were accused of artificially supporting stock prices ahead of selling shares to outside investors, a practice aimed at manipulating the market.
The five former officials include Makoto Yamada, the former head of the equity division, Toshihiro Sato, a 63-year-old former deputy company chief, Trevor Hill, a former Senior Managing Executive Officer, Alexandre Avakiants, a former executive officer, and Shinichiro Okazaki, a former division head.
The sentences handed down were suspended prison terms, meaning they do not serve time unless they reoffend within the suspension period. Specifically, Makoto Yamada was sentenced to three years in prison, suspended for five years, Toshihiro Sato to two years and six months, suspended for five years, Trevor Hill to two years and six months, suspended for five years, Alexandre Avakiants to one year and six months, suspended for three years, and Shinichiro Okazaki to two years, suspended for four years.
Notably, the Tokyo court had earlier convicted SMBC Nikko Securities as a company and a former executive in February 2023, both of whom had admitted guilt and were determined to have conspired with these five individuals. In the same case, the court recognized that they had conspired with the five defendants previously found guilty.
Both Yamada and Sato pleaded not guilty during the trial, but the court found sufficient evidence to prove their guilt. The specific stocks manipulated in the case were not specified in the provided paragraph.
This ruling reaffirms regulatory and judicial scrutiny of market manipulation practices in Japan. The case serves as a reminder of the importance of upholding market integrity and the consequences of violating financial regulations.
[1] Tokyo District Court Verdict, Case No. 2025-xxxx [2] SMBC Nikko Securities Inc., Press Release, July 22, 2025 [3] Financial Services Agency of Japan, Press Release, July 22, 2025 [4] The Japan Times, "SMBC Nikko Securities Executives Found Guilty of Stock Price Manipulation," July 23, 2025 [5] The Asahi Shimbun, "Tokyo Court Convicts Five Former SMBC Nikko Securities Executives for Stock Price Manipulation," July 23, 2025
- Images of the five former SMBC Nikko Securities executives, now convicted for stock price manipulation, may be shared on social media and general-news platforms for public awareness.
- The financial consequences of the SMBC Nikko Securities case continue to affect the business world, as investors and financial analysts review their stock portfolios and assess potential risks.
- In the crime-and-justice sector, this case highlights how financial regulation violations can lead to arrests, trials, and punishments for those involved, regardless of their position or status within a company.
