Daiwa Securities execs implicate boss>
The four Daiwa Securities Co. executives arrested Tuesday for giving
illicit financial favors to a “sokaiya” corporate extortionist have told
police the brokerage’s vice president gave them the go-ahead to do so,
sources said Wednesday.
Daiwa is suspected of providing 800 million yen in loans to Ryuichi Koike,
54, through an affiliated nonbank financial institution in January 1994.
Koike, a powerful sokaiya, is at under arrest in connection with illicit
payoffs from other brokerages and Dai-Ichi Kangyo Bank.
Soichi Tada, 51, a former general affairs manager at Daiwa who was among
those arrested Tuesday, told investigators the loans were given with
permission from Hiromistu Sogame, 61, vice president at the time, the
sources said. Prosecutors raided Daiwa’s head office and other related
locations Wednesday morning, following the arrests of four Daiwa officials
Tuesday over their alleged involvement in the payoffs. The 800 million yen
in question is considered to be a loan without collateral.
Tada and other Daiwa executives had been threatened by Koike in order to
obtain compensation for massive losses stemming from discretionary stock
trading, which is banned under the Securities and Exchange Law, the sources
said. The loans were provided as part of the compensation for these losses,
they added. Investigators at the Tokyo District Public Prosecutor’s Office
are regarding the loans as important evidence that Daiwa illegally provided
favors to Koike in violation of the Commercial Code.
The investigators are interviewing Sogame over the loans and his possible
involvement in the case.