Hideo Sakamaki, a former president of Nomura Securities Co., was arrested by Tokyo prosecutors on May 30 on suspicion of approving illegal payoffs to a "sokaiya" corporate racketeer. Sakamaki, 61, is suspected of having conspired with former managing directors Shimpei Matsuki and Nobutaka Fujikura, and a general affairs department official, Osamu Fujita, in paying 38.5 million yen in profits to sokaiya Ryuichi Koike, 54, in March 1995.
Prosecutors picked Sakamaki up at his home in Tokyo's Shibuya Ward early May 30 on suspicion of violating the Commercial Law and the Securities and Exchange Law, and brought him in for questioning as part of the investigation into the scandal. Sakamaki was later sent to the Tokyo Detention House.
Prime Minister Ryutaro Hashimoto said the arrest will jolt the nation's securities industry. "It is not important whether or not he was arrested. What matters is that the leader of a top-ranking company has caused a problem like this," Hashimoto said.