Tokyo prosecutors June 4 will charge Nobutaka Fujikura, 54, former Nomura Securities Co. director, with violating the Commercial Code and Securities Transaction Law violation, and will indict “sokaiya” corporate extortionist Ryuichi Koike within days, sources close to the authorities said June 3.
The public prosecutor’s office will indict Koike on charges of demanding compensation for securities trading losses, the first such charges under revisions to the Securities Trading Law in 1992 that made such demands a crime, they said. Koike was arrested on charges of violating the Commercial Code.
According to prosecution probes, Koike opened an account with Nomura with about 2 billion yen in cash in 1989 so the brokerage could begin discretionary share trading for him. Nomura amassed about 320 million yen in trading gains for Koike in 1993 but sustained losses later that reached 100 million yen by the end of 1994, the sources said.
Koike persistently demanded compensation for trading losses, and Fujikura tried to cover them by accounting about 4 million yen he earned for Nomura in January 1995 by trading Goyo Construction Co. shares as gains made for Koike, they said. However, the losses in Koike’s account with Nomura continued expanding, the sources said.
Because of this, Fujikura suggested that Koike trade in stock index futures in March 1995, only three months before the Nomura shareholders’ meeting, they said. Koike borrowed 500 million yen from Daiwa Credit Corp. through the introduction of Dai-Ichi Kangyo Bank, to finance the trading, they said. But his losses continued to expand.
Fujikura reported the situation to Hideo Sakamaki, 61, then Nomura president, and allegedly obtained his approval for a plan to compensate Koike for the losses.