TOKYO (TR) – The Securities and Exchange Surveillance Commission on Monday announced the filing of a complaint against a former director at Sumitomo Mitsui Trust Bank for insider trading, reports the Asahi Shimbun (Mar. 24).
According to the announcement, Hajime Katayama, the 55-year-old former director of a securities agency division the bank, allegedly purchased 25,900 shares of three stocks for a total of approximately 32.1 million yen from late December 2022 to early August 2024.
The purchases were made before it was known publicly that shares of companies were planned to be purchased through takeover bids.
Katayama knew about the takeovers through his work. He is suspected of making a total profit of at least about 29.3 million yen from the series of transactions.
In response to the allegations, Sumitomo Mitsui Trust Bank commented, “We deeply apologize for the great inconvenience caused to shareholders and other related parties. As a trust bank that is required to have high ethical standards and self-discipline, we view restoring trust as an extremely important task.”
The problem came to light when Katayama voluntarily reported it internally in late October 2024. He was dismissed on November 1. Also in November, Sumitomo Mitsui Trust Group set up an investigative committee made up of independent outside directors and external lawyers to investigate the cause and see if there were any other similar cases.
In February, the Securities and Exchange Surveillance Commission conducted a search of Katayama’s home and other locations.
