The Tokyo branch of Cresvale International Ltd. said Monday it knew nothing about the losses incurred on the privately placed bonds it had marketed since 1991, blaming its parent company for the mismanagement of clients' money.
Cresvale officials briefed its Japanese corporate customers Monday morning on the losses of privately placed bonds it sold on behalf of Princeton Economics International Ltd. at a Tokyo hotel. Representatives from 36 clients participated.
More than 70 Japanese companies bought the bonds, issued by PEI through offshore investment fund Princeton Global Management. The outstanding net assets for the 70-plus firms amount to 113.8 billion yen, but Republic New York Securities, which managed the investors' money, has only 5 billion yen left in its accounts, said Akira Setogawa, chairman and director of Cresvale's Tokyo branch.