23 May 2017

US corporate law weekly news: SEC charges former Nomura traders with fraud

On May 15, 2017, the Securities and Exchange Commission charged a pair of former head traders who ran the commercial mortgage-backed securities (CMBS) desk at Nomura Securities International Inc. with deliberately lying to customers in order to inflate the profits of the CMBS desk and line their own pockets as a result.

According to SEC allegations, the accused Nomura traders misrepresented price information while acting as intermediaries on trades with Nomura’s customers who sought to buy and sell CMBS on the secondary market. In certain instances, the traders allegedly pretended they were still negotiating bond purchases with a third-party seller at higher prices when Nomura had already acquired the bonds at a lower price.

For more information, see https://www.sec.gov/news/press-release/2017-102.

Category: Blog